GLI Finance is the lead investor in a €1 million equity financing and in return for its investment GLI Finance will receive a 9.9% stake in MytripleA. GLIF has committed to sourcing funding for €10 million of loans made through the platform, while €4 million has been committed by other private investors.
Geoff Miller, GLI Finance chief executive, who will be appointed to the MytripleA board, commented:
"This investment is a perfect fit with our strategy of focusing on unique platforms which provide capital to SMEs. It also enables us to expand our portfolio into Spain, which we see as a particularly attractive market due to its rigorous risk controls and robust regulatory approach. We believe that, having obtained full approval from the Bank of Spain to operate a peer to peer platform, MytripleA is uniquely placed to originate loans in Spain with an excellent risk-adjusted return profile."
GLI Finance has also recently increased its stake in TradeRiver Finance, a global online trade finance company, to 43.9% of the ordinary shares and 100% of the preference shares. GLIF has held a 9% stake in the ordinary shares of TradeRiver since January 2014
This transaction was accomplished by GLIF issuing 6,187,394 Ordinary Shares and 791,418 zero dividend preference shares which were given to TradeRiver’s shareholders. Each ordinary TradeRiver shareholders received one GLI Finance ordinary share of nil par value or a GLIF redeemable zero dividend preference share for each Trade River ordinary share in the issue. And zero dividend preference shares were to TradeRiver preference shareholders for each TradeRiver preference share in the issue on a £1 for £1 basis.
“With GLIF, we not only have a new investor but an important partner with whom we can work to help UK SMEs grow through increased sources of liquidity. “Small businesses in this country have always been a fundamental driver of economic growth, jobs and prosperity. 2014 needs to be the year of SMEs. We are well positioned to help the nation’s entrepreneurs and business leaders manage their working capital better, to increase trade and drive the economy ahead.”
In February GLIF raised £20m through a share placement. The proceeds of this raise have been channelled into developing and acceleration the growth of its 16 different alternative finance platforms. The £20m of shares drives GLIF’s market cap up to £125m- 40% greater than its position 6 months ago. The company sees that growth as demonstrative of the demand for diversified exposure to alternative finance products.
In March GLIF acquired a stake in solar energy lender, Open Energy Group. GLIF invested $1.25m for a 21.6% equity stake in the US-based solar investment portal.
GLIF also hinted that following the sale of a 20% stake in Fair Oaks Income Fund that further equity investments may be on the cards. We can now speculate that some of that this capital will have been deployed in the investments in TradeRiver Finance and MytripleA.