The lending platform said the new structure will target British consumers.
Lendable has launched its first Luxembourg-based fund initially providing up to £225m of financing into the UK consumer market.
The consumer lender set up the fund alongside Credit Suisse, with the pair raising capital from 10 unnamed investors across seven geographies over a three-year investment period.
The fund, aimed at professional investors, will primarily invest in consumer loans originated by Lendable. The London-based consumer lending platform added it “will also seek other credit investment opportunities across the wider UK consumer lending sector”.
Lendable, founded in 2014, said that the first commitments to the new structure should allow it to hit £150m “by early next year”. It adds further fundraising has been earmarked, with plans for the fund to grow to £350m by the end of next year.
Luxembourg is the second-largest fund investment market in the world after the US, holding €2.4trn under management, with investors taking advantage of the unified European single market, as well as the country’s flexible regulations and low taxes on funds.
Lendable chief capital officer Rory McHugh (pictured) said: “This fund lets professional investors access the same investment opportunity currently available only to the largest institutional investors. We also look forward to meeting with other fintech and consumer credit platforms seeking debt finance as we grow the asset management side of this business.”
The fund is open to MiFID professional investors and with a minimum investment of £2m.
Last month, Lendable secured a £200m funding line from Goldman Sachs Private Capital as the platform continues to attract institutional finance.