Branson Launches Grass-Roots ‘Virgin Money’ Lender

 

Virgin Group chieftain Richard Branson ain't afraid: His vision inspired the publicly-traded Virgin Mobile USA (NYSE:VM), which competes with AT&T (NYSE:T) and Deutsche Telekom's (NYSE:DT) U.S. arm. His Virgin Records and Megastores challenged the big labels like Sony (NYSE:SNE) and brick-and-mortar record/CD outlets before the digital download age; and his trademark cherry-red airlines rival carriers on both sides of the Atlantic.

Now the dashing billionaire investor is taking on U.S. lending institutions.

Branson's Virgin USA investment company recently acquired a majority stake in CircleLending, a Waltham, Mass.-based entity that specializes in loans between business colleagues, relatives and friends. CircleLending helps to set concrete, realistic terms, to mediate repayment conflicts and set up automatic electronic payments.

The grass-roots venture will be rebranded — what else? -- Virgin Money.

Branson's company is investing "tens of millions" of dollars into Virgin Money, said Asheesh Advani, CircleLending's founder and chief executive. Advani, who will stay on as the hybrid firm's CEO, declined to specify an exact amount.

The cash infusions will enable the combined business to double its workforce to 60 employees from its current staff of 30, and to offer new products, including auto and student loans.

"We like shaking up industries, and I think we can give mortgage companies, banks and credit card companies a run for their money," Branson told reporters.

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