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Peer-to-peer lender RateSetter raises £13m, Woodford and Artemis lead




By Ryan Weeks on 30th May 2017


RateSetter’s valuation tops £200m as it looks ahead to its IFISA launch.

 

RateSetter, one of the UK’s “big three” peer-to-peer lenders, has scooped £13m in equity investment from existing backers. Investors in the round included well-known fund managers Woodford Investment Management and Artemis.

 

The two funds first backed RateSetter with a £20m investment in March 2015, in a round that valued the platform at £150m. This latest round takes the firm’s valuation to over £200m, with £50m in equity capital raised to date.

 

RateSetter recently appointed Paul Manduca, acting chairman of global FTSE 100 insurer Prudential, as its non-executive chairman. CEO Rhydian Lewis (pictured) told the FT that the appointment was one step on the way to an IPO, although he added that there’s no rush.

 

Commenting on the £13m fundraise, Lewis said: “It is important to keep up the momentum of investing in our platform and this further injection of capital, coupled with the appointment of Paul Manduca as chairman, lays the ground for an important new phase of development for our business."

 

RateSetter has lent a cumulative total of £1.9bn since launching in 2010, according to AltFi Data, and is widely regarded as one of the UK’s “big three” P2P firms. But while the other two members in that trinity (Zopa and Funding Circle) have recently been fully authorised by the regulator, RateSetter continues to operate under interim permissions. FCA rules dictate that it will need to achieve full authorisation prior to launching its Innovative Finance ISA offering. 

 

Comments

Jez

05 Jun 2017 10:08am

The rates in p to p are still a lot better than anywhere else, and the last thing you want is rates that are unrealistic with businesses still making low profit. Be happy with what you have in this marketplace and these moves support long term core investors by adding stability and credibiity. Your negativity is short sighted.

John

04 Jun 2017 09:44am

That is true, but the rates only go lower if people follow the rates downwards. I stopped investing once rates fell below 5.5% in the 5 year market, but there seems to be people who invest at under 4%. If they refused to go so low, then rates would be forced up.

Dave

30 May 2017 01:53pm

In my view the "big boys" are simply setting themselves up as banks. Rates have been dwindling since corporate started investing. They now seem to have forgotten their humble beginnings and more importantly their core investors


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