Various plans are progressing at the ever-active GLI Finance.
The prominent institutional investor announced in June that it would soon launch a Closed End Fund (CEF) by the name of “GLI Alternative Finance PLC”. The purpose of the fund is to invest across a range of SME loan assets, and we presumed at the time that those loans would be originated by the GLI’s portfolio platforms. The fund will launch via an IPO on the London Stock Exchange.
We now have more colour as to what the investment trust will look like. GLI published its prospectus on Tuesday, announcing that the listing of the fund was likely to take place on 23rd September 2015.
What else have we learned?
GLI’s fund will be the fourth alternative finance focused, Closed End Fund vehicle to list on the London Stock Exchange. Its predecessors are P2PGI, Victory Park Capital’s Specialty Lending Investments and Ranger Direct Lending – which have raised well over £1 billion between them.
Geoff Miller, CEO of GLI Finance, commented:
"The provision of finance to SMEs globally continues to be problematic, with banks only willing or able to provide finance in large loan sizes on very straightforward credit terms or to smaller companies with impeccable credit, presenting the alternative finance market with multiple opportunities.”
“We believe that the Company will offer investors an alternative way to invest in SME finance assets. Firstly, the loans invested in will be originated principally through the 19 lending platforms in which GLI Finance Limited is the principal external equity investor, and therefore this is expected to offer the Company continual access to multiple loan opportunities. Secondly, the loan assets to be acquired will be diversified by duration, security type and geography through the platforms with which GLI Finance Limited is strategically partnered."
Elsewhere in the world of GLI Finance, the company continues to eat up Platform Black shares. GLI increased its stake in Platform Black from 20% to 31.9% in June, via a share-swap with Louise Beaumont, the Platform Black Co-Founder who recently acceded to role of Head of Public Affairs and Marketing in the GLI mother ship.
GLI has now acquired an extra 12.1% of the company, taking its total ownership to 44%. Platform Black Directors John Regan and Jason Batten have also increased their stake in the company to 20% each.
On the logic of taking on increased ownership of the platform, Mr. Miller said:
"We made our decision to increase GLI's stake in Platform Black in June this year but completed the transaction in two stages in order to allow the other major shareholders the opportunity to join us.”
"We are very pleased to see that they share our confidence in the recent operational and personnel changes at Platform Black as well as the performance of the business."
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.