Texas-based startup Car Capital has secured a $150 million line of credit over the next three years for its instant auto loan approval technology. The funds came from a major New York private equity firm, Fortress Investment Group LLC.
The milestone transaction was backed by Fortress with an additional capital investment of $6.125 million.
“Car Capital has built an outstanding business fueled by proven and innovative technology and a business model that delivers substantial benefits to consumers and dealers,” said Dominick Ruggiero, Managing Director of Fortress Investment Group. “We are excited to provide a capital solution that positions Car Capital for significant continued growth in the years to come.”
Car Capital will use the money to fund its auto loan scheme for underserved consumers with low credit scores who want to buy a vehicle. The funds will also be used to grow their overall business.
Car Capital, a wholly owned subsidiary of Car Capital Technologies, Inc., enables consumers to get an auto loan instantly, regardless of their credit score. The process involves Dealer Electronic Auto Loan System or DEALS, Car Capital’s all-digital platform that mediates between dealers and potential customers.
Despite rising car prices during the COVID-19 pandemic, auto loan denials fell 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, as well as investment strategies. permanent capital investment. The firm manages approximately $54.2 billion in assets as of the end of September 2021. It works with over 1,800 private investors and institutional clients globally.