Fitzrovia Finance to wind down as owner Alpha Real Capital exits peer-to-peer property lending

By Oliver Smith on Tuesday 9 February 2021

Alternative Lending

All retail capital and interest earned to date have been repaid in full.

Fitzrovia Finance to wind down as owner Alpha Real Capital exits peer-to-peer property lending
Image source: Evelyn Paris/Unsplash.

Peer-to-peer property lender Fitzrovia Finance has closed its platform and plans to wind-down its loan book on its parent company’s decision.

Alpha Real Capital, which launched Fitzrovia in 2017, said to-date the platform had originated some £150m in secured property lending with an average return of 5.5 per cent for its investors.

However, “the board’s decision to close the service was due to a number of challenging economic circumstances, exacerbated by the current pandemic and other factors impacting the commercial environment for P2P lending over the medium term.”

Fitzrovia says it has already notified its clients and the FCA, and is working with its advisors to conclude the wind-down in an orderly manner and within a reasonable timescale.

According to its board: “all retail investors’ capital and interest earned to date has been repaid in full”.

Alpha Real Capital, which has £4.1bn in assets under management, will continue its property lending activity.

Until 2019 Fitzrovia was focused on opening up its secured lending projects to institutional investors, before expanding its then £100m fund to retail investors.

Last year the lender expanded its retail offering with the addition of an Innovative Finance ISA powered by Goji’s platform.

Clearly, neither move was enough to secure Fitzrovia’s future during such turbulent times, leading to its departure from the market today.

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