GLI Finance has invested more money in Platform Black.
GLI has announced an investment of £5m in invoice finance provider Platform Black. GLI subscribed for 5 million preference shares in the company on 10 March 2016. £4m of these preference shares have been issued to date, carrying a 9% coupon (payable quarterly). These shares are non-voting, with a five year maturity.
GLI’s shareholding in Platform Black will not be changed by the £5m investment. We do learn, however, that GLI currently owns 84% of the platform’s equity. We learned in February of this year that GLI’s shareholding in the company would be climbing from 43.9% to “over 80%”, but hadn’t been sure of the specific number until now. GLI first increased its equity stake in the platform in June 2015 from 20% to 31.9%, via a share swap with Dr. Louise Beaumont, who had recently become Head of Public Affairs and Marketing at GLI – a role she continues to hold.
In the wake of Andrew Whelan's accession to the post of CEO at GLI, the company committed to focus on a smaller number of its broad array of portfolio platforms going forwards. Platform Black was one such platform. SME lender Funding Knight was among those that parted ways with the company.
Andy Whelan, Chief Executive of GLI Finance, offered comment:
“We’re delighted to announce our additional investment in Platform Black. The business is one of huge potential, with a clear market positioning and strong management team. Our expertise as one of the leading investors in the sector will ensure we’re able to work closely with the company to drive the next phase of its growth as it continues to deliver its compelling proposition to UK SMEs.”
Caroline Langron, Managing Director at Platform Black, also weighed in:
“The ongoing support and corporate strength of GLI Finance is a significant boost to our business. This milestone enables us to continue our rapid growth trajectory and complements our commitment to continuously investing in the platform and our risk-focused team.”
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.