US-based boutique venture capital firm QED Investors and alternative asset management firm Sound Point Capital Management is set to establish a new asset management business.

The new business will focus on offering debt and receivables financing solutions to early stage fintech companies specialising in e-commerce, payments, banking, revenue funding, earned-wage access and property technology.

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The partnership will provide credit solutions of $10m to $200m to such companies.

Sound Point founder and managing partner Stephen Ketchum said: “Sound Point is delighted to partner with QED to provide financing to venture-backed FinTech businesses.

“We believe this is a natural product extension for both of our businesses and leverages our respective core competencies.”

QED co-founder and managing partner Nigel Morris added: “The relationship with Sound Point will provide creative debt and hybrid financing solutions for QED-backed and other great management teams to scale their businesses and reach their full potential as quickly as possible.”

Founded in 2007 by Morris and Frank Rotman, QED invests in early-stage financial services companies in the UK, US, Latin America, and Southeast Asia.

It currently backs a number of companies including, Credit Karma, AvidXchange, Bitso, Klarna, Nubank, SoFi, Remitly and QuintoAndar.

In 2016, QED partnered with Canadian lender Scotiabank to promote fintech start-ups in Latin America that are focused on financial technology disruptors.

Commenting on the latest development, Sound Point Specialty Finance and FinTech Lending practice head Philip Bartow said: “We are proud of the collateral-centric underwriting approach we have built in lending to fast-growing FinTech companies and look forward to partnering with additional management teams under the QED umbrella.”