The specialist SME finance provider GLI Finance has now released its interim results.
GLIF has made the headlines a number of times over the past 6 months. In June, the disposal of two CLO investments meant that the company suddenly had a spare $20.4m to channel into the SME finance space. GLIF also added a number of platforms to its budding armada of alternative finance providers. Finpoint UK, TradeRiver Finance, Dansk Faktura Børs, CrowdShed and Proplend all joined the GLIF family between January and June 2014. But Geoff Miller, CEO of the company, wasn’t done yet.
Geoff Miller, CEO of GLI Finance, commented:
“There continue to be issues with the provision of SME finance globally. The banks continue to be risk averse but many have also adopted a purely quantitative approach to lending that makes many businesses unbankable, despite their huge growth potential. At the same time, many new alternative finance platforms are looking more towards institutional capital to fund their lending to these businesses, rather than a broader based P2P model, so the outlook for GLIF is very positive.”
“GLI Finance is soon to have a unique range of 16 SME finance platforms that span asset class and geography. We are now entering a phase of scaling these platforms significantly so that they can lend to a greater number of businesses and help GLIF deliver exciting returns for its shareholders.”
Mr. Miller’s comments appear to indicate that he is now satisfied with the range of geographies, industries, sizes of lending and types of lending covered by his collection of platforms. A fresh focus upon the scaling of the current GLIF family companies will inevitably mean the deploying of an increasing amount of capital via each platform – as opposed to an emphasis on equity investments into new platforms.
GLIF has invested over £6.4m in the equity of platforms in 2014 (excluding the amount invested in LiftForward – which has not been disclosed). The SME financier has put a further £9.2m million to work as lending via its portfolio of platforms. Hefty amounts, to be sure, and there are already whispers of more exciting GLI Finance investments on the horizon. We’ll keep you posted.
Join AltFi for its third annual Alternative Income Forum, exploring closed-ended funds (investment trusts) specialising in generating an income using alternative assets such as specialist finance, P2P lending, direct lending, asset leasing and more. Hear from the leading investors and fund managers in this rapidly growing market.