US-based boutique venture capital firm QED Investors and alternative asset management firm Sound Point Capital Management is set to establish a new asset management business.
The new business will focus on offering debt and receivables financing solutions to early stage fintech companies specialising in e-commerce, payments, banking, revenue funding, earned-wage access and property technology.
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The partnership will provide credit solutions of $10m to $200m to such companies.
Sound Point founder and managing partner Stephen Ketchum said: “Sound Point is delighted to partner with QED to provide financing to venture-backed FinTech businesses.
“We believe this is a natural product extension for both of our businesses and leverages our respective core competencies.”
QED co-founder and managing partner Nigel Morris added: “The relationship with Sound Point will provide creative debt and hybrid financing solutions for QED-backed and other great management teams to scale their businesses and reach their full potential as quickly as possible.”
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By GlobalDataFounded in 2007 by Morris and Frank Rotman, QED invests in early-stage financial services companies in the UK, US, Latin America, and Southeast Asia.
It currently backs a number of companies including, Credit Karma, AvidXchange, Bitso, Klarna, Nubank, SoFi, Remitly and QuintoAndar.
In 2016, QED partnered with Canadian lender Scotiabank to promote fintech start-ups in Latin America that are focused on financial technology disruptors.
Commenting on the latest development, Sound Point Specialty Finance and FinTech Lending practice head Philip Bartow said: “We are proud of the collateral-centric underwriting approach we have built in lending to fast-growing FinTech companies and look forward to partnering with additional management teams under the QED umbrella.”
