Assetz Capital hopes to run £ 1 billion in loans by the end of 2016 and they have a good start in getting there. The peer to peer lender launched in April of 2013 and has funded over £70 million in secured lending and states not a single investor has lost a penny to date. Recent data indicated a weighted average gross return of 10% per year and the platform has returned over £2.5 million in interest to investors. Assetz Capital has enjoyed a 300% per year growth in lending benefiting from the shift in loans to direct lending, away from banks, and attracting a growing number of investors as they seek better yield in in their investments.
Earlier in 2015 Assetz Capital launched an equity crowdfunding offer on Seedrs seeking a raise of £2 million in a convertible security. The offer has easily vaulted this amount and stands at over £3.1 million. An additional £ 3 million in capital is being raised by institutional investors solidifying over £ 6 million in funding to grow the direct lender.
Stuart Law, CEO and founder of Assetz Capital, recently explained the use of the new funding. Law stated that they expect to double their team particular in loan origination and credit. Peer to peer assets will soon be included in ISAs (or LISAs), along with SIPPs, in 2015 and Law wants to be well positioned to take advantage of this opportunity. The platform will also boost retail marketing to boost borrowers and is expected to partner with “selected international joint ventures”.
Partnerships with RBS and “huge external investment”, including Victory Park Capital, has helped fuel platform growth. Law recently commented on expectations for 2015;
“We’ve also had a really strong deal flow to kick off 2015, partnering with Royal Bank of Scotland (RBS) and providing loans for some of their customers. Moreover, we’ve taken in US institutional investment of £150 million, which will be lent out to SMEs via the platform. These are the first of several big deals we expect to announce this year.”
