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Lendix launches first ever SME lending fund in ELTIF structure




By Daniel Lanyon on 14th July 2016


The Paris-based SME lending platform has launched the first European Long Term Investment fund (ELTIF) dedicated to SMEs.

 

French marketplace lending platform Lendix has received the go ahead to launch the first ever European Long Term Investment fund (ELTIF) dedicated to lending to SMEs.

Recent European Union regulation created the ELTIF, a new brand of fund available for retail and professional investors that is designed to stimulate cross-border, non-bank investment across the EU. 

The French stock market regulator, the Autorité des Marchés Financiers (AMF), gave the go ahead to Lendix to take advantage of the ELTIF format following its launch which became

In December. 2015. The ELTIF Structure aims to promote long-term investment in the real economy as part of the 2020 Capital Markets Union action plan by lending to small businesses & SMEs.

It is called the Lendix SME Loans fund II.

Olivier Goy, president & founder of Lendix said: "This new fund format, passportable everywhere within the European Union, fits perfectly with the core business of Lendix and in particular the opening of our platform across Europe."

Thanks to this new fund, investors can lend directly to European companies, starting with France where we have operated since April 2015, Spain where we have just received our agreement and soon Italy” he added.

The fund will be between €50-75m in size and is currently backed by several larger institutional investors including CNP Assurances, Zencap AM (OFI Group) and the fund 'Prêtons Ensemble' managed by Eiffel Investment Group and sponsored by Aviva France and AG2R La Mondiale.

Lendix allows SMEs to borrow €30k to €1.5m over periods ranging from 3 to 84 months to finance their development and expansion. The average loan size is €250k.

Patrick de Nonneville, chief operating officer of Lendix says the average SME borrowing on Lendix has €2.4m of turnover, €240k of operating profit and employs 11 people.  

"It’s under the radar of all existing debt funds, so it's a new asset class for investors. Lendix strengthens its objective to serve both private investors selecting their loans directly on the marketplace and institutional investors investing through the fund,” he said.

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