Fintex Capital, a London-based institutional investor focused on established European P2P marketplaces, has today announced the successful completion of its first investment on a P2P marketplace.
The investment boutique has selected Germany’s largest P2P marketplace, auxmoney, as the first P2P platform from which to purchase loans. On the back of this transaction, Fintex Capital has issued a euro denominated bond, backed by marketplace loans, which it has sold to institutional investors. The company's bonds are capital markets friendly, carrying an ISIN and settling through Euroclear and Clearstream. Fintex claims that the product is entirely unique within the market. The familiarity of the bond format is likely to remove some of the barriers that more traditional fixed income investors may encounter when looking at P2P as an asset class. Being able to represent trades in existing risk and reporting systems may seem like a small thing, but the reality is that the absence of these tools will likely deter many thousands of pension funds, insurance companies, high net-worth individuals, private banks and family offices from investing in marketplace lending.
Fintex was founded in 2015 by Robert Stafler and Jerome Anglade. Between them, Stafler and Anglade have extensive experience in P2P, structured credit and securitisations with long tenures at bulge bracket banks Morgan Stanley and JP Morgan. They tell us that their team at Fintex is highly selective in terms of the marketplaces that they choose to invest on and that they works closely with the platforms to ensure that their investments meet Fintex’s stringent requirements. The firm’s centralised risk management systems enable the team to closely track the performance of each individual loan and provide sophisticated monitoring, reporting, valuations and projections for each portfolio. Over the coming months, Fintex plans to make further credit investments in P2P loans and in the wider Fintech arena.
“We are delighted to launch Fintex, a new and unique fintech investment firm. More and more investors consider marketplace lending a highly relevant asset class for their fixed income portfolios. Our aim is to take P2P lending ‘mainstream‘ among institutional investors by making it as easy and hassle-free as possible for them to invest on the marketplaces they like. Fintex was specifically designed as an issuer of debt instruments that investors are intimately familiar with. In doing so, we provide a missing link between Europe’s leading marketplace lending platforms and global capital markets.”
“Fintex Capital has a number of investment mandates from a diverse range of investors who prefer bespoke and transparent investments over traditional investment funds, and I am delighted that our unique approach has been warmly welcomed by the investment community.
We look forward to investing on more handpicked platforms around Europe and in the wider fintech arena.”