Following the announcement in November of its intention to raise further equity, the P2P-dedicated investment trust, P2P Global Investments, has today provided more information on the timing and size of the capital raise.
Up to £200m will be raised and a prospectus for the share issue will be available ‘shortly’. The issue is expected to close ‘in the coming weeks’.
At the close of November P2P GI was 77% invested and, according to Liberum, is on track to be fully deployed by the end of January if not before. Issuing a new class of shares protects existing shareholders from a period where the new equity is being deployed and therefore not earning a return.
Simon Champ, CEO of Eaglewood Europe, P2P GI's Investment sub-managment company commented: "We have successfully deployed the majority of the capital we raised in May. Since then we have expanded the number of platform relationships we have and the underlying demand for reasonably priced loans from high quality borrowers continues to grow, as a result our opportunity set is growing quickly."
Since their issue in May 2014, P2P GI’s shares have increased by 14%, an impressive performance. Given this performance, it is not entirely surprising that there is the demand for more. If the upper limit of the new raise were to be realized, the amount of capital raised by P2P GI would double – a further measure of the success of the industry and of the P2P GI model.