GLI Finance is considering the launch of an alternative finance-focused closed end fund.
The SME funding organ now holds an equity stake in 16 alternative business funding solutions – a diverse range of platforms, providers and navigational tools. GLIF is now mulling the idea of floating a fund in order to invest in loans originated primarily through a mixture of these portfolio companies. Such a fund would offer investors access to an extremely broad range of alternative finance investment types, whilst offering a sizable liquidity injection to GLIF’s family platforms.
GLI Finance occupies a unique position in the space in terms of its day-to-day involvement with so many disparate alternative financing models, and the company considers that position an ideal pedestal from which to launch a closed-end fund. The proposed investment vehicle would target a high single digit yield for investors. N+1 Singer Advisory LLP has been appointed to assist GLIF with the creation of this fund.
The success of Simon Champ’s P2P GI – which recently raised a further £250m via a C share issue – has doubtless factored into GLIF’s decision-making process. P2P GI managed to stay on track deploying the initial £200m (raised via a London Stock Exchange IPO), and the value of its shares climbed by 14% between its IPO in May 2014 and early January 2015.
Dedicated fund structures have the look of becoming an integral facet of the alternative lending space over the next few years.
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.