By Sam Griffiths on Wednesday 5 August 2015
The Liberum AltFi Volume Index for Continental Europe hit new highs in terms of monthly origination volume in July with €73.7m in financing provided by the industry. This is a massive 31% more than the previous largest origination volume month, which was seen in March of this year. Year on year growth for the month of July is a staggering 206%, while the growth rate for the last twelve months is a still impressive 111%.
Taking a look behind the headline numbers, several platforms had record months. However the industry performance was largely driven by just two platforms: Auxmoney and Pret D’Union. Both these platforms posted record origination months, eclipsing their previous best by 35% and 55% respectively. Whenever we’ve observed significant jumps in volume such as these in the UK, it has usually been accompanied by a change in investor mix, with institutional money taking a bigger slice of the loans originated. Whether this is the case or not here is hard to tell, as European platforms tend not to be as forthcoming with data as their UK peers. According to their latest newsletter, P2PGI, the UK’s largest P2P focused closed end fund, have 25.5% of their assets invested in European loans (including the UK). In February, another fund – Eiffel eCapital, which is based in France – announced its launch. Perhaps this is the source of the extra volume? One thing is for sure, these numbers point to the Continental European industry springing to life as we suggested that it might back in April.