First Stock Market Firm to Turn to P2P

By Guglielmo de Stefano on Friday 29 April 2016

Alternative Lending

Assetz Capital will provide Tavistock Investments PLC with a £2m facility.


Secured SME lending platform Assetz Capital has recently forged a partnership with Tavistock Investments PLC, a firm that provides compliance, administration and accounting services to independent financial advisers (IFAs). According to the agreement, the platform will provide Tavistock Investments with a £2m facility. The loan - now available to investors - has a 3-year maturity with a potential extension of 2 years. The gross interest rate per annum is 8.5%.


Tavistock Investments PLC is one of the UK’s largest IFA networks with over 300 advisers and with around £4bn of assets under management. Tavistock manages the Group’s Centralised Investment Proposition (CIP) combining active and passive strategies across in-house and externally managed mandates. The company offers various “model portfolios” with different risk/return profiles to meet the needs of different types of investors.


The funds will be used by the investment firm to acquire a complimentary business as a part of its development plan. The name of the target company has not yet been disclosed. The fifth and last business to have joined the Tavistock Group is Abacus, an FCA regulated independent financial advisory business headquartered in Hereford.


Brian Raven, Tavistock's Chief Executive, commented:


“We pride ourselves on being innovative and forward thinking. Whether that’s in selecting businesses to partner with, such as Abacus, or selecting funding partners such as Assetz Capital. Being one of the first to use peer-to-peer lending in this way demonstrates this and we’re pleased to be working the team at Assetz Capital.”


This is the first time, to our knowledge, that a stock market listed firm has partnered with a peer-to-peer platform in order to raise funds. This news story is clear evidence that peer-to-peer lending is becoming a mainstream source of funding, not only for small businesses, but also for companies like Tavistock that could more than likely have ventured down traditional financing routes.


Andy Holgate, head of business lending at Assetz Capital, concluded:


“This is the first time a quoted PLC has worked with a peer to peer platform and we are delighted to be able to offer this opportunity to investors. It’s further proof that peer-to-peer is gaining traction and to see Tavistock put the money to such good use is a great endorsement for the proposition.”

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