The fintech company Figure Technologies is preparing to take its lending division, LendCo, public in the first half of 2024 with a valuation estimated between $2 billion and $3 billion. The initial public offering (IPO) is being coordinated by prominent financial institutions Goldman Sachs (NYSE:GS), JPMorgan Chase (NYSE:JPM), and Jefferies.
In the lead-up to the IPO, reports surfaced today indicating that Figure Technologies has been expanding its market reach by securing partnerships with independent mortgage bankers to offer private-label home equity lines of credit (HELOC) products. This move aligns with the company's strategic growth as it has seen its HELOC volume surpass $1 billion across its platforms in the third quarter of 2023.
Earlier in 2023, Figure Technologies enhanced its product suite with new home equity offerings and witnessed a growing adoption of its Loan-as-a-Service (LaaS) platform by mortgage lenders. The firm's technology-driven approach has been pivotal in streamlining processes for mortgage lenders and borrowers alike.
The CEO of Figure Technologies, Mike Cagney, disclosed plans for an upcoming private blockchain TBA trade in early November, showcasing the company's commitment to innovation in the digital assets space. This development coincides with Figure's efforts to raise funds for its digital asset division.
Cagney also reported significant financial milestones for Figure Technologies in July 2023, including $900 million in loans and $2.7 million in adjusted profits for the second quarter. However, this period also saw staff reductions impacting engineers as part of a company restructuring process.
Despite facing challenges such as a failed SPAC merger and an abandoned merger with Homebridge Financial Services in 2022, Figure Technologies has forged ahead by establishing partnerships with The Loan Store and CrossCountry Mortgage. In mid-2023, the company launched a wholesale lending platform utilizing Provenance Blockchain and expanded loan origination services, further diversifying its offerings into private fund services, banking, and payments.
As part of the preparations for LendCo's IPO, Cagney is actively seeking a new CEO to lead the spinoff. The move to go public marks a significant milestone for Figure Technologies as it continues to make strides in transforming the financial services industry through blockchain technology and innovative lending solutions.
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