Credit Union Industry Leader, TruStage™, Spearheads Strategic Transaction to Propel Fintech Happy Money Forward

News provided by

Nov 15, 2023, 11:15 ET

Backing from TruStage™ Ventures and other investors will advance Happy Money's mission of happier lending and accelerate the company's growth in its next chapter.

TORRANCE, Calif., Nov. 15, 2023 /PRNewswire/ -- Happy Money, a leading platform for unsecured lending in partnership with credit unions, today announced that TruStage™ Ventures and other major institutional investors are entering into a strategic transaction to help fund the next phase of Happy Money's growth and advance the company's mission. At close of the transaction, Happy Money will remain a privately held company with independent operations.

Happy Money is setting a new standard for lending that keeps people and their happiness at the heart of it all. The company partners with credit unions to offer consumers the money they need to achieve their goals while simultaneously helping those credit unions achieve greater scale and connectivity. Through its platform, Happy Money delivers unique lending solutions, high-performing assets, and national reach to help credit unions strengthen their balance sheets and accelerate growth.

"For the last six years, we have partnered with Happy Money on loan originations to strengthen and diversify our lending portfolio while simultaneously furthering our commitment to improving consumers' financial well-being," said Greg Mitchell, President and CEO of First Tech Federal Credit Union. "We're excited for the future of Happy Money as they continue to bring their expertise in unsecured lending and portfolio management capabilities to credit unions nationwide."

TruStage Ventures, which invests in financial technology companies focused on innovation, first began its relationship with Happy Money in 2017 as an early-stage investor. Earlier this year, the two companies partnered on a first-of-its-kind solution for loan payment protection to provide consumers with peace of mind and greater financial resiliency. And now, this TruStage-led strategic transaction will enable a path to profitability and provide a significant growth opportunity for Happy Money.

In addition to financial and strategic backing, TruStage's national sales team will bolster efforts to bring Happy Money's technology platform and lending capabilities to even more credit unions nationwide – thereby reaching more consumers looking for a digital, customer-centric approach to lending.

"Lending is critically important to credit unions, and more credit unions need digital lending capabilities to serve the needs of their members," said Brian Kaas, President and Managing Director of TruStage Ventures. "TruStage and Happy Money share a deep commitment to credit unions and members. TruStage recognizes the lending power and capabilities that Happy Money brings to credit unions, and we are excited to continue working with Happy Money as we embark upon this next chapter of our partnership."

As the company transitions into this next chapter, Happy Money has appointed Joe Heck as CEO. Heck most recently served as the company's Chief Operating Officer and has a deep commitment to credit unions and a track record of driving transformation and innovation in the lending industry. With his combination of grit and creativity, he is uniquely positioned to steer the company through this next season and drive the team forward in creating value for Happy Money's stakeholders, partners, and consumers alike.

"I see tremendous opportunity for Happy Money as we drive our mission and vision forward from a position of strength," said Joe Heck, CEO of Happy Money. "We believe credit unions' community-oriented approach is vital for the financial ecosystem, and we're committed to leveraging our platform to help them unlock greater balance sheet connectivity, simplicity, and diversity while simultaneously advancing a happier approach to lending that meets the needs of today's consumers."

Guggenheim Securities is serving as an exclusive financial advisor and Cooley is serving as legal advisor to Happy Money in connection with the transaction, which is expected to close by end of year 2023 subject to regulatory approvals.

About Happy Money

Happy Money is designing a happier way of lending that helps borrowers achieve their goals and helps credit unions achieve greater impact. Our mission comes to life through our platform, which enables happier lending at scale by connecting consumers with capital sourced from financial institutions who keep their best interests at heart. Through this model, we also bring credit unions access to technology solutions, high-performing assets, and national reach to help increase their strength and resilience.

Backed by leading investors, Happy Money has helped over 300,000 members since inception – working with community-focused lending partners to fund more than $6 billion in loans*. As a leader in remote work, Happy Money has a passionate and purpose-driven employee base of over 200 people across the United States. For more information, please visit happymoney.com.

*As of November 1, 2023.

About TruStage™ Ventures

TruStage™ Ventures, LLC, is the venture capital arm of TruStage, a financially strong insurance, investment and technology provider. We believe a brighter financial future should be accessible to everyone, and our products and solutions help people confidently make financial decisions that work for them at every stage of life. TruStage Ventures, LLC, houses two investment funds: a general fund focused on strategic investments and partnerships to connect fintechs with credit unions and financial institutions, and the Discovery Fund, focused on early-stage investments in fintechs with diverse founding teams. TruStage Ventures, LLC, has invested in over 50 fintechs, including 16 in the Discovery Fund, and is committed to continuing to invest in fintechs that help make brighter financial futures accessible to all. For more information, visit www.trustage.com/ventures.

SOURCE Happy Money