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New £1bn non-bank lending fund launches

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

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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.”

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