LuminArx Capital Management and Bridge have formed a partnership to provide up to $500 million in financing to consumer packaged goods brands and suppliers fulfilling orders for major U.S. retailers.
The partnership combines LuminArx’s alternative capital and transaction structuring capabilities with Bridge’s AI-powered underwriting platform and origination relationships across large retail ecosystems.
The financing program is intended to help suppliers fund production, inventory purchases and other working capital needs associated with fulfilling retailer orders.
Retail suppliers can face significant cash-flow pressure because they often must purchase materials, manufacture products and build inventory before receiving payment from their customers. As order volumes increase, that timing difference can restrict a supplier’s ability to accept new business or fulfill larger contracts.
LuminArx and Bridge aim to address that gap with financing designed around suppliers’ operational requirements and retail relationships.
Bridge said demand for capital among suppliers serving the country’s largest retailers has consistently exceeded the amount of financing available to them.
The platform uses artificial intelligence and industry data to streamline the origination, underwriting and funding process. Bridge’s technology is intended to evaluate financing opportunities more quickly while providing borrowers with transparent and tailored funding options.
LuminArx will contribute capital and structuring expertise to the program. The alternative investment manager provides flexible financing solutions and seeks to structure investments that combine downside protection with potential upside participation.
The companies have worked together over the past six months to develop the financing partnership and prepare it for broader deployment.
Walmart currently works with Bridge to provide its supplier community with access to financing that can be used to purchase inventory and fulfill orders.
Bridge has also established partnerships with Best Buy, Dollar General and Chipotle to support retail suppliers. Its broader corporate network includes Hilton, AAHOA, Choice Hotels, Hyatt and Wyndham through its hospitality financing business.
The company was founded in 2023 by Rohit Mathur and Harte Thompson following its spinout from Citi.
Since its launch, Bridge has deployed more than $800 million and financed hundreds of growing businesses.
The company operates across two primary markets: hospitality commercial real estate financing and retail supplier financing. Its platform is designed to help developers and suppliers access capital through a faster and more technology-driven process.
Bridge is backed by investors including TTV Capital, Citi Ventures, Uncorrelated Ventures, Gilgamesh Ventures, Thayer Partners and U.S. Bank Ventures.
The $500 million partnership with LuminArx substantially expands the amount of capital Bridge can offer to suppliers supporting large retail orders.
The program could allow suppliers to finance inventory and production without waiting for existing customer invoices to be paid. Access to capital may also help businesses accept larger orders, enter new retailer relationships or manage seasonal demand.
Financing under the partnership remains subject to eligibility requirements, due diligence, underwriting approval, definitive documentation and the availability of capital. The companies did not guarantee that the full $500 million capacity would be deployed.
Vedder Price served as legal counsel to LuminArx. KingsRock Advisors advised in connection with the transaction.
KEY QUOTES:
“We are pleased to partner with Bridge to support retail suppliers with flexible capital solutions for production and inventory needs. Bridge’s artificial intelligence capabilities and extensive network of industry relationships complement LuminArx’s structuring expertise and strategic capital.”
“Together, we look forward to scaling a financing solution designed to meet the needs of retail suppliers and their buyers.”
Andrew Fitch, Managing Director at LuminArx Capital Management
“The demand from suppliers selling into the country’s largest retailers has consistently outpaced the capital available to fund it. LuminArx shares our conviction in this market and brings the scale and sophistication to meet that demand.”
“By collaborating closely together with them over the past six months, we believe we will now be able to provide fast and efficient capital to suppliers.”
Rohit Mathur, Co-Founder and CEO of Bridge
