BlackRock increases Funding Circle fund stake to £50m

By Daniel Lanyon on 4th July 2018

Alternative Credit

The world’s largest asset manager has backed P2P lending giant Funding Circle’s investment trust since 2016.

BlackRock increases Funding Circle fund stake to £50mImage source: https://www.flickr.com/photos/sagesolar/33207423193/in/photolist-SAqHZc-ekEJfw-iF8Sjt-rDCHL2-22WScrf-25YPR2g-HgQmTr-ibe7kt-TsMzrF-4oRACr-s2ovg3-NY7CGx-uRFyJ-q1eLbz-bpGSh6-5wap6q-SacxZh-9krquW-qhtHTi-JarXhV-pjGes8-27iVVhT-cDJ4Mj-qm1XPa-8Qw2YR-aFuy8t-4kQjhY-8WcXDG-4kQyAy-mSRrQU-kfTSEp-nPUQTL-8GA5Kj-EjTjPX-aF5pMu-8WcMFd-6wp9vn-qTPVN8-38bjSj-q6xHmG-eVTNWL-F116ed-6QaJyx-9ePm7m-dxfDEY-dkJ2uu-8KZ2ET-qwDWbU-dXnYpH-dYqpp6

BlackRock has increased its holding in the £329m Funding Circle SME Income fund to £50m, according to regulatory filings, as the world’s largest asset manager strengthens its investment in to disruptive finance.

The asset management giant, which holds the investment trust in its UK funds business, first invested back in 2016 but has - alongside other institutions - topped up its holding on several occasions.

Last week it upped its stake from 14.03 per cent of the share capital of the portfolio to 15.05 per cent of the total share capital bringing its holding to nearly £50m.

The Funding Circle SME Income fund launched in December 2015 and has been a consistent performer in terms of its dividend payouts. Although, it recently said that it was giving giving guidance of a likely dividend cut in the third quarter of the year owing to increased hedging cost and the amortisation of its funding line from the European Investment Bank.

BlackRock also holds an equity stake in Funding Circle.

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