GLIF to Launch Closed End Fund?

By Ryan Weeks on Tuesday 17 February 2015

Alternative Lending

GLI Finance is considering the launch of an alternative finance-focused closed end fund.

The SME funding organ now holds an equity stake in 16 alternative business funding solutions – a diverse range of platforms, providers and navigational tools. GLIF is now mulling the idea of floating a fund in order to invest in loans originated primarily through a mixture of these portfolio companies. Such a fund would offer investors access to an extremely broad range of alternative finance investment types, whilst offering a sizable liquidity injection to GLIF’s family platforms.

GLI Finance occupies a unique position in the space in terms of its day-to-day involvement with so many disparate alternative financing models, and the company considers that position an ideal pedestal from which to launch a closed-end fund. The proposed investment vehicle would target a high single digit yield for investors. N+1 Singer Advisory LLP has been appointed to assist GLIF with the creation of this fund.

The success of Simon Champ’s P2P GI – which recently raised a further £250m via a C share issue – has doubtless factored into GLIF’s decision-making process. P2P GI managed to stay on track deploying the initial £200m (raised via a London Stock Exchange IPO), and the value of its shares climbed by 14% between its IPO in May 2014 and early January 2015.

Indeed, Victory Park Capital has already announced its intention to follow in the footsteps of P2PGI – planning to float on the London Stock Exchange at some point this year in order to raise £200m.

Dedicated fund structures have the look of becoming an integral facet of the alternative lending space over the next few years.   

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