Mike Cagney’s financial technology company Figure technologies has taken another step to take its lending division public. LendCoAccording to a Bloomberg report, the company is hiring investment banks to coordinate the IPO.
People familiar with the deal told Bloomberg that Figure is working with him Goldman Sachs Group Inc., JP Morgan Chase & Co. And Jefferies Financial Group Inc. for the IPO. Figure and the banks declined to comment.
The company’s lending arm, valued at between $2 billion and $3 billion, is expected to go public in the first half of 2024. However, according to the report, there is no final decision on timing and assessment. Figure was valued at $3.2 billion in a venture capital-backed funding round in 2021.
Meanwhile, Figure is looking to raise $50 million for its digital assets division, according to Bloomberg. The division, which will not be part of the IPO, will be led by Cagney, the former head of SoFi. A new CEO would be considered for LendCo.
According to Cagney’s letter to investors and partners in July, Figure raised $900 million in loans and generated $2.7 million in adjusted earnings in the second quarter of 2023. The profitable lending business has a contribution margin of more than 50 percent, he said in a meeting.
Figure was founded by Cagney in 2018 and previously attempted to go public.
The company planned to go public through a merger with the Special Purpose Acquisition Company (SPAC). Figure Acquisition Corp. in 2022. However, it was abolished as the blank check company was delisted New York Stock Exchange.
Figure also announced its intention to merge with Homebridge Financial Services in 2022, which failed due to regulatory delays. CMG acquired Homebridge’s retail properties in March.
In July, Figure laid off 20% of its workforce, about half of them engineers, as part of its first round of layoffs.
Figure uses the proprietary Provenance Blockchain platform for lending, equity management, private fund services, banking and payments.
In June, the company launched a wholesale lending platform that gives lenders access to the company’s home equity lending offering.
CMG Financial, CrossCountry Mortgage, Fairway Independent Mortgage And The Loan Shop are Figure’s private label partners.
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