Car Capital Secures $150M in Funds for Its Car Loan Project
Texas startup Car Capital secured a $150 million credit line over the next three years for its instant car loan approval technology. The funds came from prominent New York private equity company, Fortress Investment Group LLC.
The milestone transaction was backed by Fortress with an additional $6.125 million equity investment.
“Car Capital has built an exceptional business powered by proven, innovative technology and a business model that delivers substantial benefits to consumers and dealers alike,” said Dominick Ruggiero, managing director at Fortress Investment Group. “We are excited to provide a capital solution that positions Car Capital for significant continued growth in the years ahead.”
Car Capital will use the money to power its auto loan project for underserved consumers with low credit scores who want to buy a vehicle. The funds will also be used to expand their overall business.
Car Capital, a wholly-owned subsidiary of Car Capital Technologies, Inc., enables consumers to secure a car loan instantly, regardless of their credit score. The process involves Dealer Electronic Auto Loan System or DEALS, Car Capital’s fully digital platform that works as an intermediary between dealerships and potential customers.
Despite the rising car prices during the COVID-19 pandemic, auto loan rejections fell by 4.2 percentage points to 3.7% in 2021, according to the latest report from the Federal Reserve Bank of New York.
Fortress Investment Group was founded in 1998 and is headquartered in New York, with a mission to raise, invest, and manage assets such as private equity, credit and real estate, and permanent capital investment strategies. The company has approximately $54.2 billion of assets under management as of the end of September 2021. It works with over 1,800 private investors and institutional clients worldwide.
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