New £1bn non-bank lending fund launches

By Daniel Lanyon on Thursday 2 May 2019

Editor's PickAlternative Lending

European Risk Capital’s multi-client debt programme will target the UK mid-market.

European Risk Capital LLP has launched CreditStream LLP, a £1bn multi-client debt programme providing UK non-bank originator lenders with wholesale funding access to the alternative debt capital markets.

The London-based firm, established in 2008 specialises in structured capital raising across financial services, real estate, commodities and alternative assets.

With an individual deal target size of £10m - £100m or more, CreditStream is aimed at financing balance sheets of UK mid-market, asset-based lenders comprising bridging & development lenders, second charge mortgagees, consumer & SME funders, auto/equipment finance companies, and fintech lenders, amongst others.

Unlike single-issuer debt programmes, CreditStream may be accessed by multiple originator lenders effectively sharing economies of scale, streamlined credit and documentation processes, and, as a result, lower risk-adjusted funding costs and enhanced return on capital.

Tony Gioulis, ERC’s Managing Partner, says CreditStream is a debt vehicle that “lends to lenders”.

“The UK mid-market, non-bank finance companies continue to experience a significant funding void left by mainstream debt warehouse facilities and public securitisation markets traditionally accessed by large institutional lenders. CreditStream forms a compelling alternative to conventional wholesale finance sources and is consistent with our strategy of providing UK mid-market lenders with a flexible, cost-effective growth platform in a polarised credit environment.”

Sign up for our newsletters


Your daily 7am download of all things alternative finance and fintech.

Fintech and alternative finance headlines with an exclusive Editor's Note each week. Delivered Monday at midday.