Centerbridge-backed Auxmoney considers sale or IPO

Auxmoney, a German digital consumer lender backed by private equity firm Centerbridge Partners, is considering strategic options such as a sale or initial public offering, according to a report by Bloomberg. The company is working with its management team and other shareholders to evaluate these alternatives, though no decision has been made. Discussions are still in the early stages.

Auxmoney, which began as a peer-to-peer lending platform in 2007, has shifted away from crowdfunding. Since 2022, the company has relied on institutional investors and securitizations in the capital markets to fund its lending activities. Over the past five years, Auxmoney's revenue has increased by more than 30% on average annually, with more than 95% of its loans processed through automated systems using artificial intelligence. Credit losses have also decreased by about half since its investment.

Centerbridge Partners is not Auxmoney's only backer, with venture capital firms including Index Ventures, Union Square Ventures, and Foundation Capital also holding stakes. The lender provides personal loans starting at €1,000 through a digital application process, using proprietary credit-scoring technology to assess borrowers.

In 2024, Auxmoney reported net income of €23 million on revenue of €265 million, primarily from interest earned on consumer loans and credit brokerage fees. The company is expected to report its 2025 financial results later this year. A potential sale or IPO would allow Centerbridge and other shareholders to monetize their investment while providing Auxmoney with additional capital for growth.

This comes as private equity investors increasingly seek to realize value from financial services assets as valuations and market conditions improve.