Funding Circle investment trust taps the market for new cash

By Daniel Lanyon on Thursday 16 March 2017

Alternative Lending

The most recently launched closed-ended fund in the market offering P2P exposure to investors has launched a C Share Issue.

The £167m Funding Circle SME Income fund has launched a C Share issue in a bid to increase its assets under management, particularly from the institutional and intermediary markets.

Funding Circle SME Income targets a total return of 8-9 per cent per annum including a yield of 6-7 per cent with the rest made up from capital growth. It is currently, unlike its peers, sitting on a premium to its net asset value, of 2.3 per cent.

Launched in November 2015, the managers of the fund invest through a portfolio of loans to small/medium sized enterprises originated through the Funding Circle platform. It raised £150m at launch and is now fully invested – albeit with 5 per cent held in cash.

Unlike its peers, the Funding Circle SME Income fund peers by having no management or performance fees at the listed fund level.

According to AltFi Data’s, the trust’s NAV has outperformed the broader UK marketplace since its inception - as measured by the AltFi Data Marketplace Lending Returns Index. 

Richard Boléat, chairman of the investment trust, said: "The Company has achieved stable returns for Ordinary Shareholders, including dividend payments in line with the 6-7 pence per share per annum target. The Board is excited by the prospect of making further loans to small businesses in the UK, US and Continental Europe and is very pleased to offer existing shareholders and new investors an opportunity to invest in the Company."

In case you’re interested, Numis is acting as broker with books closing at 12 noon on 6 April 2017, with shares admitted for trading.

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