Camino Financial and Fundation to Merge, Creating a Comprehensive SMB Lender

Published 9 months ago

Camino Financial, a lender focused on minority and overlooked businesses, is set to merge with Fundation, a leading tech-enabled lender. The union will establish a comprehensive lender for small-and-mid-sized businesses (SMBs) with credit solutions designed for all phases of small business growth.

Philadelphia-based investment firm LL Funds will be the financial sponsor for this merger, driving the company through its next stage of growth. Shivraj Mundy and Putnam Coes, both Partners at LL Funds and current Camino directors, will continue as Directors of the combined company. Mundy will also serve as the Chairman of the Board.

Community Investment Management (CIM), an impact investment firm and funding partner to both Camino Financial and Fundation, played a significant role in facilitating the merger.

Aiming to Serve Underrepresented Small Businesses

Shivraj Mundy, of LL Funds, believes that small business lending presents a substantial opportunity to serve an essential but underrepresented sector of the U.S. economy. With $250 million of combined equity and debt capital, the merged entity is poised to offer a wide range of credit solutions to this segment.

Putnam Coes, also from LL Funds, highlighted the importance of innovating better solutions for small businesses, especially in the context of tightening financial conditions and rising interest rates, for the growth of the US economy.

Merging Strengths to Provide Inclusive Financing Solutions

The merger combines two market leaders to address the urgent need for accessible and inclusive financing solutions for small businesses. Both firms have independently pursued this mission for over a decade, funding tens of thousands of small businesses and experiencing rapid growth after Covid.

Sandip Nayak, President & Founding Member of Fundation, expressed enthusiasm for the merger’s potential to innovate the credit ecosystem and create substantial value for the small business community.

Leadership for the Combined Entity

Mickey Konson, with over 25 years of experience in finance, technology, and small business lending, will become the CEO of the combined entity and join the Board of Directors.

About the Merging Companies

Camino Financial is a prominent, community-driven fintech firm committed to providing affordable credit and wealth-building solutions. As a government-certified Community Development Financial Institution (CDFI), it offers innovative financing solutions intended to support overlooked entrepreneurs and minority-owned small businesses.

Fundation, LLC is a leading tech-enabled SMB lender that specializes in digital lending solutions for small businesses. They collaborate with over 25 financial institutions to provide digital lending capabilities and efficiently tailored services for small businesses.

LL Funds, founded in 2009, makes opportunistic investments in asset-backed securities (ABS) and the companies that originate them. The company manages approximately $2.3 billion for institutional and individual investors.

Community Investment Management (CIM) is an institutional impact investment manager that provides strategic debt capital to foster responsible lending innovation. CIM supports organizations that drive positive change, financial inclusion, economic growth, and social impact.