Virgin USA has acquired a majority stake in CircleLending
Virgin USA Acquires Majority Interest in Pioneering Financial Services Company
CircleLending Will Use Investment to Increase Awareness and Expand Product Line
New York, N.Y. – May 15, 2007 – Virgin USA, Sir Richard Branson's North American investment group, announced today that it has acquired a majority stake in CircleLending, Inc., the innovative financial services company that pioneered the business of managing loans between relatives and friends. Terms of the transaction were not disclosed.
Virgin USA and CircleLending will work together to rebrand the company and expand financial service products for consumers and small-business owners. Launched in 2001, CircleLending is widely regarded as a trailblazer in the financial services industry for designing unique products that allow individuals to save money and keep wealth in the family by securing affordable loans from relatives and friends. CircleLending has helped first-time homebuyers, entrepreneurs, students and other individuals access credit at favorable terms.
“Our investment in CircleLending is consistent with Virgin's focus on developing fresh approaches to consumer issues and challenging the status quo,” said Frances Farrow, CEO of Virgin USA. “Financial consumers are increasingly self-directed, empowered and seeking the kinds of innovative alternatives offered by CircleLending. We're delighted that our investment will form the foundation for a major new Virgin-branded financial services offering in the U.S.”
“We are excited to work with Virgin Group and to bring a unique brand of innovation to the financial services industry,” said Asheesh Advani, president and CEO of CircleLending. “Funding from Virgin USA further underscores the success that CircleLending has seen over the past five years. This investment will allow us to grow our business and develop new financial products on our own and in partnership with banks and other financial institutions. These products will simplify the financing of homes and businesses and help people create, transfer and preserve their wealth.”
About Virgin USA
Virgin (www.virgin.com), a leading branded venture capital organization, is one of the world's most recognized and respected brands. Virgin USA oversees and is responsible for the expansion of the Virgin brand in North America , blasting into markets where the customer is underserved, offering value for money, good quality, innovation, exceptional customer service, fun and a sense of competitive challenge. Existing businesses include Virgin Atlantic Airways, the award-winning transatlantic airline; Virgin Mobile USA, the leading wireless youth network; Virgin Megastores, the groundbreaking music stores; and Virgin Comics, an entertainment and media company creating original stories and epic myths for worldwide audiences. Building upon the success of these businesses, Virgin USA continues to look for opportunities in North America where it can offer something better, fresher and more valuable to consumers.
About CircleLending, Inc.
CircleLending, Inc. (www.circlelending.com) is a rapidly growing financial services company uniquely serving the needs of the $89 billion interpersonal lending market in the United States. The company provides a full suite of services for managing private loans and mortgages, including loan documentation, payment processing and loan servicing. By simplifying the process of formalizing these transactions, CircleLending has made loans between friends and family members a mass market alternative to costlier forms of credit.