KeyBank Secures $450M Credit Facility for North American Liquidity Expansion

Liquidity Secures Up to $450 Million Credit Facility, led by KeyBank, to Fuel North American Expansion

Published: March 22, 2025

In a notable move highlighting the continued strength of the U.S. tech sector, Liquidity, a global asset manager with billions under management specializing in private credit for growth-stage companies, announced today the closing of a structured credit facility possibly reaching $450 million. KeyBank, a major U.S. financial institution,will anchor the facility with senior debt,supplemented by mezzanine financing and equity contributions.The initial commitment from KeyBank is $75 million, with plans to scale up to $250 million as liquidity expands its lending operations within the United States.

This landmark deal marks Liquidity’s first major partnership with a U.S.-based bank, signaling a strategic shift towards capturing a larger share of the vibrant North American tech market. Bolstered by its proprietary AI-powered investment platform, Liquidity aims to deploy this capital to originate credit agreements with rapidly growing, late-stage technology companies across various sectors.

The credit facility with KeyBank is a vote of confidence in Liquidity as we expand our blueprint in North America, said Ron Daniel, Co-Founder and CEO at Liquidity. The US is the leading ecosystem for startup innovation, and we’re well positioned to deploy flexible capital solutions with unmatched speed to late-stage tech companies in the market. We value KeyBank’s partnership and look forward to delivering on the chance for our investors.

Ron Daniel,Co-Founder and CEO at Liquidity

AI-Driven Investment: A competitive Edge

Liquidity’s investment strategy relies heavily on its in-house AI and machine learning platform. This technology allows the firm to originate, underwrite, and monitor investments with a claimed industry-leading loss rate of 0%.This zero loss rate, if sustained, would be a major differentiator in the often-volatile world of venture debt. The firm plans to offer credit solutions ranging from $10 million to $150 million to eligible growth-stage tech businesses worldwide.

The application of AI in finance is rapidly evolving. Companies like kabbage (now part of American Express) and Upstart have demonstrated the power of AI in streamlining lending processes and improving risk assessment for smaller businesses.Liquidity appears to be applying similar principles to larger, late-stage tech companies.

The US market has an abundance of well-performing growing tech companies looking for flexible capital partners. With our AI-driven decision-making, liquidity can deliver speed and flexibility to borrowers and data-driven certainty to investors, added Daniel.

Ron Daniel, Co-Founder and CEO at Liquidity

KeyBank’s Perspective: supporting Tech Innovation

KeyBank’s investment in liquidity underscores the bank’s commitment to supporting innovation and growth in the technology sector. By providing senior debt for this credit facility, KeyBank is enabling Liquidity to expand its reach and provide much-needed capital to promising tech companies.

We’re pleased to support Liquidity with this credit facility as they continue to grow in the US market, targeting the opportunity within late-stage technology, said Rian Emmett, Segment Head of KeyBank Specialty Finance Lending.

Rian Emmett, Segment Head of KeyBank Specialty Finance Lending

Banks across the U.S. are increasingly looking for ways to partner with and support the tech sector. This partnership provides KeyBank with exposure to a portfolio of late-stage tech companies vetted and managed by Liquidity’s AI-driven platform. It’s a strategic move to participate in the potential upside of these high-growth ventures while mitigating risk through Liquidity’s expertise.

Recent Transactions and Backing

Over the past year, Liquidity has been involved in several high-profile transactions with global companies, including InMobi, HungryPanda, infra.Market, and SumUp. These deals demonstrate Liquidity’s ability to identify and support promising companies across diverse markets and industries. Liquidity is backed by major financial institutions, including Mitsubishi UFJ Financial group (MUFG), spark Capital, and IDB, providing further validation of its business model and investment strategy.

Company	Industry	Location	Investment Type
InMobi	Advertising Technology	Bengaluru,India	Credit Facility
HungryPanda	Food Delivery	London,UK	credit Facility
Infra.Market	Construction Materials	Mumbai, India	Credit Facility
SumUp	Financial Technology	London, UK	Credit Facility

Potential Impact and Counterarguments

Liquidity’s expansion into the U.S. market could have a significant impact on the availability of capital for late-stage tech companies. By providing flexible credit solutions, Liquidity can definitely help these companies fuel their growth and innovation. This could lead to increased job creation, economic growth, and technological advancements within the U.S.

A potential counterargument is that providing debt to late-stage tech companies carries inherent risks. These companies, while often showing promise, can be volatile and face intense competition.A downturn in the economy or a shift in market trends could negatively impact their ability to repay their debts. However, Liquidity’s AI-driven platform and claimed 0% loss rate are designed to mitigate these risks. The effectiveness of this approach will be closely watched as Liquidity’s U.S. operations ramp up and as economic conditions evolve.

How effective is Liquidity’s AI platform in mitigating the inherent risks of lending to late-stage tech companies?

Liquidity’s North American Expansion: An Interview with financial Analyst, Sarah Chen

Archyde News: Welcome, Sarah. Thanks for joining us today to discuss Liquidity’s recent announcement. This $450 million credit facility is certainly making waves. Can you give us your initial thoughts?

Sarah Chen: Glad to be here.This is a important move. Liquidity’s partnership with KeyBank,specifically targeting the North American tech market,signals a strategic shift and a strong vote of confidence from a major financial institution. It underscores the attractiveness of the U.S. market for late-stage tech financing.

AI in Finance: The Competitive Edge

Archyde News: Liquidity is heavily leveraging its AI-powered platform.How crucial is this technology in their strategy?

Sarah chen: Extremely. The claim of a 0% loss rate is aspiring, but if they can maintain it, that’s a major differentiator.AI allows them to streamline the lending process, assess risks more efficiently, and potentially offer more flexible and competitive credit terms.

Archyde News: We’ve seen AI used in lending before,with companies like Kabbage. How does Liquidity’s approach compare, especially targeting growth-stage tech companies rather than smaller businesses?

Sarah Chen: The core principles are similar – data-driven decision-making, automation, and risk assessment – but the scale and complexity are different. Late-stage tech companies often have more intricate financial structures and require more refined analysis. Liquidity’s platform needs to handle this complexity while maintaining speed and accuracy.

KeyBank’s Role and Market Implications

Archyde News: KeyBank’s involvement seems critical.Why is this partnership beneficial for both Liquidity and keybank?

Sarah Chen: For Liquidity, it provides a significant capital injection and validates their business model. For KeyBank, it offers exposure to a portfolio of potentially high-growth tech companies, managed by Liquidity’s AI-driven platform. It’s a way for KeyBank to participate in the tech boom while managing their risk profile.

Archyde News: Considering the current economic climate and potential market volatility, what are the main risks associated with providing credit to late-stage tech companies?

Sarah Chen: The biggest risk is, undoubtedly, the volatility of the tech market. While many late-stage companies have strong revenue streams,they’re also subject to intense competition and rapid technological shifts. Economic downturns or changes in market trends can significantly impact their ability to repay debt. Liquidity’s AI platform and claimed 0% loss rate must be effective to weather volatility.

Looking Ahead: Opportunities and Challenges

Archyde News: Liquidity has already been involved with companies worldwide. What implications does this new expansion into the US market hold for these companies?

Sarah Chen: Providing access to more diverse capital solutions will help these companies fuel their growth and innovation.This expansion could encourage job creation, economic growth, and technological advancements within the U.S.

archyde News: what are the biggest challenges Liquidity will face as they ramp up their US operations?

Sarah Chen: Maintaining that 0% loss rate is a significant challenge, especially in a new and potentially more volatile market.They need to quickly adapt their AI platform to the nuances of the US tech sector, build strong relationships with borrowers, and effectively manage their portfolio’s risk. A key test will be how well their AI models perform during an economic downturn or a shift in market sentiment, but the 0% claim is a bold one.

archyde News: Sarah, thank you for this insightful discussion. It’s a captivating growth to watch.

Sarah Chen: Thank you for having me.

Archyde News: What do you think about Liquidity’s AI-driven approach? Do you think this model is sustainable for funding late-stage companies? share your thoughts in the comments.