Channel Capital launches $300m lending strategy to fund SME lenders

Asset manager Channel Capital Advisors is looking to deploy the first $100m of a new $300m fund it has raised to back SME lenders in Europe and North America.

The ‘Fintech Lending Fund’ has been raised from a group of unnamed institutional investors, with a third of the funds ready to go immediately.

Channel is looking to fund digital lending platforms for SMEs, and says it already has a “substantial pipeline” ready to go.

“The investment into our Fintech Lending Fund is a significant step forward for Channel – it will see us work closely with other digital platforms to facilitate loans for SMEs that are faster, simpler, and don’t dilute their business,” said Paul Wilson, Channel’s chief investment officer.

“Indeed, the deployment of dedicated funds like this is crucial in supporting and fuelling the ongoing growth of the global SME sector.”

Channel is a UK-based asset manager which has deployed over $20bn over the past 15 years, including as loans, working capital facilities and securities.

For its latest fund, Channel is targeting portfolios of corporate credit risk on a senior or mezzanine basis.

Channel also recently appointed Ion Fratiloiu, formerly Yobota’s head of commercial, as its new chief commercial officer.

“Fintech has transformed consumer finance in recent years, but SME finance has largely been left behind,” said Fratiloiu on his appointment.

“Channel is going to change all this, combining advanced technology and risk-assessment know-how to bring an incredible embedded SME lending proposition to partners globally.”