Tech investor T. Rowe Price builds large stake in Funding Circle

By Daniel Lanyon on Friday 6 March 2020

Alternative Lending

The listed asset manager is now one of the largest investors in the firm, which has seen a huge depression in its IPO in October 2018.

Tech investor T. Rowe Price builds large stake in Funding Circle
Image source: Funding Circle

US asset management giant T. Rowe Price has built at 7 per cent stake in Funding Circle following an all-time low for the marketplace lender’s share price. 

T. Rowe Price, which is also a very significant investor in Tesla alongside many of tech’s largest names, bought the stake earlier this week when shares were around the 72p level, having not previously owned shares in the firm.

Funding Circle’s share price has headed south since its listing at 440p in October 2018 and is now at an all-time low of 70p, representing a more than 80 per cent fall. 

The firm has been hit more recently by weakness across global stock markets as concern builds for the global economy's resilience to the spread of the coronavirus. However, its fall from a valuation of £1.5bn at its initial public offering (IPO) has also been interpreted in some quarters as representing concern for fintech valuations in general and alternative lending in particular. 

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