Camino Financial in Los Angeles has agreed to buy Fundation in Reston, Va., in a merger of online small business lenders.
The deal is being led by private equity firm LL Funds, with further funding from BankUnited and Community Investment Management. They are providing $250 million of equity and debt.
Fundation has a focus on small and midsize businesses, with a model that includes partnering with banks. Camino Financial, a community development financial institution (CDFI), specializes in fledgling companies.