Ahead of an expected IPO, Funding Circle scores $1bn deal with Wall Street giant

By Daniel Lanyon on 2nd September 2018

P2P/Marketplace Lending

The move will see Alcentra, part of BNY Mellon, purchase loans from the peer-to-peer lending platform’s US operation.

Ahead of an expected IPO, Funding Circle scores $1bn deal with Wall Street giant

Alcentra, part of the Wall Street banking giant BNY Mellon, will purchase $1bn of US loans over the next few years from peer-to-peer lending platform Funding Circle ahead of a much-rumoured initial public offering from the UK-based fintech.

AltFi understands from a source familar with the matter that the deal will include a plan to launch the first securitisation programme of Funding Circle’s US loans in the coming year as the firm looks to scale its US securitisation efforts following on from the successful securitisations of its SBOLT programme in the UK.

Funding Circle, the largest P2P platform in the UK, with operations in Europe and the US also, will use the new Alcentra capital to fund loans to US small and mediums sized firms.

The Funding Circle SME Income fund, which also invests in the platform's US loans, along side its UK and European loans, last week unvield a £500m share issuance programme, taking its size to a potential £850m of permanent capital to fund lending.

Bloomberg has also reported that Credit Suisse Group AG will be involved in helping finance the loans as part of the three-way transaction although AltFi has been unable to confirm this.

Comments

AltFi London Summit 2019

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.

18th March 2019


Companies in this Article:

Alcentra
Funding Circle

More like this:

Zopa shakes up board ahead of bank launch

14th February 2019
Roger Baird

Assetz Capital tops £700m lending milestone

15th February 2019
Roger Baird

Ratesetter ISA tops £175m in first year

12th February 2019
Roger Baird

iwoca raises £150m in equity and debt capital

18th February 2019
Daniel Lanyon