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.
Mickey Konson, who co-founded StreetShares, will serve as CEO of the combined company, which will keep the Camino name. Fundation will still use its brand after the sale closes.
“I have been passionate about helping small business owners succeed my whole career,” Konson wrote in a LinkedIn post. “I am thrilled to be back in a role directly financing the goals dreams and courage of this special and select group.”