Hedge fund Brevan Howard and quant trader DRW invest in Edge Focus
Edge Focus, a technology company that applies machine learning and artificial intelligence to analyse credit, has entered into a strategic partnership with prominent hedge fund Brevan Howard and global quantitative trading firm DRW.
“I cannot think of two better complementary partners to enable us to accomplish our ambitious goals while using our technology to lower the cost of capital for millions of borrowers,” says Elliott Lorenz, co-founder and CEO of Edge Focus.
“We are delighted to partner with Edge Focus, whom we view as an exciting and innovative manager in the field of consumer credit,” says Aron Landy, CEO of Brevan Howard.
“At DRW, we have witnessed first-hand the power of sophisticated technology to disrupt the status quo and drive rapid innovation,” says Adam Garner, DRW Partner. “Edge Focus has a compelling vision for using cutting-edge machine learning techniques to radically change the consumer lending landscape.”
This partnership will allow Edge Focus to further develop their technology, expand their team, and grow their footprint within different fintech asset classes including real estate, autos, and point of sale.
“We are very impressed with the team's differentiated tech-enabled approach and are delighted to partner with Edge Focus to expand credit to mainstream US consumers,” says Renaud Laplanche, CEO of Upgrade.
Edge Focus is reshaping fintech lending by disintermediating traditional lending market structure. Their proprietary technology allows them to source from a variety of channels and work with lending partners to underwrite credit and forecast defaults with a high degree of accuracy. This allows Edge Focus to curate investment portfolios for institutional clients to match their risk return objectives while having the meaningful impact of lowering the cost of capital for borrowers and providing access to those who have been traditionally overlooked.
The company’s pricing technology is designed to assess any individual’s credit risk exclusive of race, gender or other personal identifiable information. As a minority owned and operated firm, consideration for environmental, social and governance (ESG) impact is at the heart of the company’s business practices.
Edge Focus is also launching two new institutional investment strategies as part of the deal, which will allow them to strengthen and form new partnerships with fintech platforms and loan originators.