Liquidity Group (liquidity.com) is a direct lender. They are a “fintech-enabled” private credit firm that uses a proprietary AI platform (called “Liquidity Analysis”) to underwrite deals.

While they operate like a fund, they often behave with the speed of a broker because of their automated diligence process, which can provide term sheets in as little as 24–72 hours and close deals within weeks.

1. Software Deals

They do these through their Mars Growth Capital joint venture.

• The Entity: Mars Growth Capital is a $1 billion+ partnership between Liquidity Group and MUFG (Mitsubishi UFJ Financial Group).
• The Strategy: They specifically target SaaS and “asset-light” tech companies in Europe and APAC.
• Direct vs. Broker: They fund from their own balance sheet (via the MUFG JV) rather than brokering it to a third party.

2. Source of Capital

They have some of the deepest pockets in the venture debt space due to institutional backing:

• MUFG (Japan’s largest bank): Their primary strategic partner. MUFG has committed over $1 billion to their joint venture funds.
• Apollo Global Management: In 2022, Apollo committed $425 million in a credit facility to help Liquidity scale its own lending.
• KeyBank: As recently as March 2025, they secured a $450 million conventional debt facility from KeyBank to further expand their lending capacity.
• Spark Capital: They also have traditional VC backing for their own corporate operations (Series C).

3. Lending Volume and “Loan Tape” (2025 Estimates)

As a private company, they don’t publish a public loan tape, but based on their capital raises and deployment speed:

• Deployment Guess: They have historically claimed to deploy $50M–$100M per month. Given their new $450M facility in early 2025, they are likely on track to lend $1.2B–$1.5B in 2025.
• Loan Tape Profile: Their portfolio consists of 100+ companies. Their “tape” is heavily weighted toward SaaS, Fintech, and E-commerce companies that have at least $3M–$5M in ARR.
• Credit Quality: They boast a 0.00% default rate (as of their recent 2025 marketing), which suggests their AI is either exceptionally good at picking winners or they are lending to very “safe,” high-growth companies that can easily refinance.

4. Average Terms

They are known for being “founder-friendly” but price for the risk of not taking board seats or heavy covenants:

• Loan Size: Typically $10M to $100M, though they can go as low as $5M for high-growth “unicorns in waiting.”
• Interest Rates: Usually SOFR + 6% to 10% (effectively 11%–15% total).
• Warrants: Unlike traditional venture banks (who might take 0.5%–1%), Liquidity Group often structures deals with minimal to no warrants if the interest rate is higher, or small “equity kickers” (1%–3%) to stay competitive.
• Amortization: They often offer Interest-Only (IO) periods of 6–18 months to appeal to companies that want to preserve cash for growth.
• Covenants: They generally avoid “financial” covenants (like maintaining a specific debt-to-equity ratio) in favor of “performance” milestones.