MUFG Bank to invest another $250 million in Liquidity Group

Japanese banking giant MUFG Bank is investing another $250 million in Liquidity Group, an Israeli company.

Founded in 2018, Tel Aviv-based Liquidity is a provider of unlimited, unsecured, non-recourse and non-dilution growth capital. The company was founded by Ron Daniel, who is also CEO. Meitav Dash, MUFG and Spark are all partners in the company.

Liquidity announced in May this year that it had signed an agreement to create a massive $2 billion investment fund in partnership with MUFG Bank and US venture capital firm Spark Capital.

MUFG invested $1.25 billion of the initial sum and has now added another $250 million.

The new funding is expected to be used to provide additional lines of credit to growing tech companies. In September and October, Liquidity provided more than $500 million in credit to unicorns like eToro, Eruditus, SumUp, Infra.Market and others, according to the company.

“Liquidity has set itself the goal of enabling deserving companies to continue and grow at an accelerated pace even at a time when global markets are fearful and halting activity, and in times when funding slows significantly,” Daniel said.

Liquidity Group announced in April that it had reached agreements for approximately $775 million in capital commitments in the first three months of 2022, led by funds and entities managed by Apollo subsidiaries.

Liquidity is a credit-focused fintech platform that invests, syndicates, and automates growth and mid-market lending for companies around the world, providing capital primarily to early-stage technology companies. MUFG’s primary banking subsidiary, MUFG Bank, is a key strategic capital partner of Liquidity, having invested venture capital in the business and formed several lending joint ventures.

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