The world’s largest asset manager has backed P2P lending giant Funding Circle’s investment trust since 2016.
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.
Now in its sixth year, the AltFi London Summit returns on 18th March 2019 to 155 Bishopsgate. Last year proved to be a crucial turning point for the key players building the future of finance. Leading platforms launched oversubscribed IPOs, digital banks proliferated and mainstream financial institutions started their own disruptive propositions. With 2019 certain to be another landmark year, more questions will be asked by regulators with investor interest in disruption also poised for more rapid growth.