Centerbridge-backed Auxmoney considers sale or IPO

Private equity-backed German digital consumer lender Auxmoney is exploring strategic options that could include a sale of the business or an initial public offering, according to a report by Bloomberg citing unnamed people familiar with the matter.

Centerbridge Partners, which backs the Düsseldorf-based company, is working with Auxmoney’s management team and its other shareholders as it assesses the alternatives, the people said. Discussions remain at an early stage and no decision has been made on whether to pursue either route.

Representatives for Auxmoney and Centerbridge reportedly declined to comment.

Any transaction would come as private equity investors increasingly look to realise value from financial services assets as valuations and market conditions improve. Several sponsor-backed European lenders have recently attracted potential buyers or entered sale processes, providing a more favourable exit environment for investors that have held assets through a period of subdued deal activity.

Auxmoney began life in 2007 as a peer-to-peer lending platform, but has since moved away from crowdfunding. Since 2022, the company has funded its lending activities through institutional investors and securitisations in the capital markets.

The business has expanded rapidly in recent years, with revenue increasing by more than 30% a year on average over the past five years, according to people familiar with the company. More than 95% of its loans are now processed using automated systems incorporating artificial intelligence, while credit losses have fallen by about half since Centerbridge invested.

Centerbridge is not Auxmoney’s only institutional backer. Venture capital firms including Index Ventures, Union Square Ventures and Foundation Capital also hold stakes in the business.

Auxmoney provides personal loans starting at €1,000 through a fully digital application process. Its proprietary credit-scoring technology is used to assess borrowers and determine their creditworthiness.

The lender reported net income of €23m on revenue of €265m in 2024, according to its financial statements. Interest earned on consumer loans and fees from credit brokerage accounted for much of its revenue. The company is expected to report its 2025 financial results later this year.

Auxmoney has also expanded its access to institutional funding. In October, the company announced that it had raised €950 million from public fixed-income investors through debt backed by German consumer loans.

A potential sale or IPO would give Centerbridge and the other shareholders an opportunity to monetise their investment while providing Auxmoney with access to additional capital to support its lending platform and future growth.

The discussions also underscore the broader reopening of exit markets for financial services assets, after higher interest rates and challenging financing conditions kept many private equity-backed businesses off the market in recent years.