In the wake of what has been a monumental month for Alternative Finance, the Liberum AltFi Index returns with your statistical snapshot of the industry. What are the big numbers showing?
For the first time we’re providing growth rates for each individual sector. It is already clear that the asset-backed variety of p2p lenders is going to be a force to be reckoned with. One of them – Wellesley & Co. – now boasts back-to-back months of unparalleled growth. LendInvest continues to make waves of its own. The sector itself, represented in the Index only by the relatively new entrants LendInvest and Wellesley, leapt forward roughly £16.5m through March. Is this the hottest sub-sector of the alternative finance movement?
Wellesley & Co. entered the history books this week – completing a record-breaking $8.3m bridging loan. After a growth rate of 73.92% through February, the figure for March stands at a staggering 156.58%. The skin-in-the-game approach adopted by the platform bolsters the belief that this early success is sustainable. The company is unique among p2p lenders in its commitment to risking its own capital first and foremost in every loan that it undertakes.
“March was another progressive month for us after seeing 73% growth in February, to achieve 156.58%. Being scalable is incredibly important to us; we have put our business model through a test in the last two months with the sustained record breaking growth and we are very happy with the results all round. We see this as a launch-pad for continued growth and increased confidence. We were incredibly pleased to complete the largest Peer-to-Peer loan ever of £8.3m secured over 27 properties, and next month will see the implementation of our maximum diversification tool for lenders.”
The invoice finance platforms certainly caught the eye of watchful investors at the AltFi Summit in early March. It is obvious that this too is among the most exciting areas of the industry, with the sector burgeoning this month by 14.57%. Leading the way was Platform Black. It passed the £50 million mark en route to a 22.03% expansion rate through the month of March.
Sustained and stable success stand among the hallmarks of an attractive investment opportunity. Assetz Capital is the most consistent platform out there at the moment. It has now enjoyed upwards of a 20% growth rate for four consecutive months, and is the sole platform to accomplish the feat.
“Assetz Capital has achieved growth of more than 20 per cent for each of the last four months, which is a huge marker of the platform’s success.”
“Over the past 12 months, we’ve shown that our model – providing carefully-selected loans with tangible security – is what lenders want. Thanks to the senior lending team, high levels of security and market-leading returns, we’ve attracted thousands of investors investing anything from £20 to multi-million pound portfolios through Assetz Capital.
“This level of growth shows just how realistic our target of £100m lent in 2014 is, and highlights the appetite for peer-to-peer lending among businesses and investors.”
AltFi is returning to Amsterdam for its second annual Summit in the city. The inaugural event last year was a roaring success, with key figures from across Continental Europe's alternative finance and digital banking sectors highlighted. These included Jeroen Broekema, managing director of Funding Circle Netherlands, and Mieke van Engelen, head of innovative partnerships at ABN AMRO's standalone lending platform, New10.