ABS Capital Exits FactorTrust in Sale to TransUnion

Atlanta-based alternative credit bureau FactorTrust has sold to TransUnion in efforts to help build out the company’s credit access business to reach more consumers across America. As part of the deal, in which financial terms were not disclosed, ABS Capital will sell its stake in the fintech company. In 2015, ABS Capital Partners co-led a $42 million funding round in the now twelve-year-old company alongside B2B tech-focused venture firm MissionOG.

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FactorTrust provides alternative credit data, analytics and risk scoring information intended to empower lenders to make more informed decisions, and increases financial inclusion to a larger segment of the consumer population. TransUnion, a 50-year-old provider of consumer reporting models, indicates that the addition of FactorTrust’s short-term and small-dollar loan lending data will enhance its credit suite and help lenders offer a broader range of credit products to responsible buyers. The company notes that short-term and other small dollar loans are the largest category of consumer credit obligations not currently part of nationwide credit reporting agency databases.

ABS Capital is a growth equity firm which focuses on investments in business and education services, information and communications technology and healthcare. The Baltimore-based firm is run by Don Hebb, who previously served as President and Chief Executive Officer of the investment bank Alex Brown & Sons before it was sold to Deutsche Bank in 1999. Hebb co-founded ABS with Tim Weglicki in 1990.