By David Tuckwell on Wednesday 21 June 2017
It is a big partnership for both OnDeck Australia and GCI
Spying the favourable risk/return profiles on OnDeck's business loans, Global Credit Investments pitches in with refinancing.
Asset manager Global Credit Investments has hit up its network of rich Australian families and raised A$22.5 million to refinance OnDeck Australia’s small business loan book.
A press release issued by both companies said the capital raise was “significantly oversubscribed”, with wealthy Australians attracted to the returns offered by OnDeck's loans, typically in the high-single-digits.
“Australian investors are looking beyond shares and real estate as a way to diversify their sources of returns – and as a result, high-net worth individuals are attracted to new models like OnDeck,” said GCI Chair Steven Sher.
GCI was the first Australian fund to invest in P2P loans, getting its start buying loans from marketplace lenders Prosper and LendingClub. GCI has wanted to invest in loans Australian P2P companies for some time but wanted to ensure that the companies had a solid track record before doing so.
The GCI deal is the second partnership locked in by OnDeck Australia in two months. Last month, the company partnered with the Franchise Council of Australia, the peak body for the franchise sector in Australia, hoping to connect with Australian franchises as a small business loan provider.