Bakersfield payday loan company gets $15m loan, puts it into investment fund
Bakersfields payday loan provider Fido Capital has received a $15 million US investment from a private equity firm to help boost its business and expand its business.
The company, which launched in April, was launched by its founder and CEO, Michael Sibon.
Fido Capital’s board is made up of former hedge fund managers and business partners, including billionaire investor and billionaire real estate developer Jim Chanos, according to its website.
Fidelis chief executive officer Kevin Schuett is also the managing director of the Fido Funds, which is the firm’s investment arm.
Fidos chief operating officer Paul Storz is also a former senior managing director at Blackstone.
Sibon said Fido was interested in investing in the company’s business because of its potential to grow and expand.
“The investment allows us to build a new model, which can help us scale the business to meet our long-term growth objectives,” he said.
“We are excited to join Fido, an industry leader in this space, and look forward to helping build a future that is more sustainable for everyone.”
Mr Sibons investment firm is called Blackstone Capital Partners and it has a portfolio of more than $300 million.
Fidon said it invested $5 million in the payday loan business in the fourth quarter of this year.
“Blackstone Capital was interested and excited to support Fido’s growth, and the acquisition of Fido has added another layer of certainty for Fido shareholders,” the company said in a statement.
The deal was announced in a letter from Fido CEO Michael Sivak.
“Fido is a pioneer in the field of online payday loans, which provide consumers with access to safe and affordable options,” Mr Sivaks said.
The payday loan website is owned by the company and is operated by Fido.
The announcement of the acquisition follows news last month that Fido had been ordered by US regulators to repay more than 1.2 million loans and fines totaling $14.4 million to more than 2,500 consumers.