By Daniel Lanyon on 2nd September 2018
The move will see Alcentra, part of BNY Mellon, purchase loans from the peer-to-peer lending platform’s US operation.
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.
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.
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.