Exchange Associates hope to create a new independent P2P management company to act as a long-term institutional funding partner to global peer-to-peer lending platforms.
Working with those platforms, it is intended to purchase loans, advise platforms on engaging with the wholesale market and, where possible, to purchase equity stakes in emerging P2P businesses.
Some of the key highlights that have come from this deal are:
Simon Champ to be CEO; Liberum to remain a partner in the venture
Reiterates intention to list first permanent capital institutional funding partner for P2P lending
Marshall Wace has a track record of incubating new businesses, and this venture is a continuation of that trend
Liberum is to receive cash consideration for the business as well as a small partnership interest
Simon Champ said: “While developing this concept it became clear our plans would be augmented by an incubation partner and we are pleased to have secured the backing of Marshall Wace. I am delighted to be joining as chief executive and we intend to press ahead with listing a P2P funding vehicle in coming months.”
Marshall Wace will act as a development partner and incubator to the business, in preparation for a proposed listing of a new P2P permanent capital funding vehicle. Under the agreement, Marshall Wace will purchase the intellectual capital and other assets of Exchange Associates from Liberum Capital.
A spokesman for Marshall Wace said: “We are making this investment because peer-to-peer lending has the potential to transform consumer and small-to-medium enterprise lending practices worldwide and, in so doing, benefit the whole economy. We believe the next step in its development is the creation of investment vehicles suited to private and institutional clients who want to tap into the P2P sector and this partnership will transform that vision into reality.”