To update its portfolio Victory Park Capital Lending Investments has acquired a number of investments from private funds managed by its investment manager, Victory Park Capital Advisors.
This includes loans originated by OnDeck Capital, Funding Circle USA, and Upstart Network as well as balance sheet loans to Borro and Kreditech. Additionally, VPC Specialty Lending Investments has provided a new balance sheet loan to Applied Data Finance. The total consideration for all these investments made by VPC Specialty Lending Investments is £35.5 million.
The fund also announced that it intends to invest about £20 million in an existing investment fund managed by Victory Park Capital. This investment is expected to be completed by the end of April 2015 and once that is done the fund will have invested more than 28% of the net IPO proceeds.
In March Victory Park Capital’s Specialty Lending Investments successfully floated on the London Stock Exchange. The issue was fully subscribed at its target size of 200 million shares, raising proceeds of £200 million. Since the float the shareprice has moved sideways in contrast to P2P GI's shares which have increased in value by around 5% immediately after each of their two floats.
“VPC Specialty Lending Investments provides investors with access to an established and successful business and brand through its Investment Manager Victory Park Capital. The Company is targeting an attractive total return for shareholders comprising of dividend income and capital growth in this highly attractive and fast growing asset class. Victory Park Capital has experience in both direct lending and purchasing whole loans, as well as extensive knowledge of sector participants and the complex regulatory requirements needed to operate in the industry. With its significant sourcing network, Victory Park Capital Advisors has identified a strong pipeline of investment opportunities in which the Company may invest. We look forward to executing on our strict investment strategy and we are targeting to be substantially fully invested within six months of Admission in a portfolio diversified across geography, product and structure.”
The company has previously announced which platforms it has existing relationships with and those that it is likely to gain exposure to. These include, Assetz Capital; Avant Credit; Borro; Elevate Credit; Fast Legal Funding; Kreditech; LendUp Global; Funding Circle USA and Funding Circle; OnDeck Capital; Prosper Marketplace; Square and Upstart.
Victory Park will be investing through Funding Circle, financing up to $420 million in loans to small businesses originated on the platform in both the US and the UK over the next three years. The company also recently committed to investing £150 million via the Assetz Capital platform over the next five years.
Since 2010 Victory Park Capital has made more than $2.2 billion of investments and commitments across a number of financial technology platforms, geographies, products and structures.