Funding Circle

Two banks invest in Funding Circle securitisation

The European Investment Fund (EIF) – part of the European Investment Bank – and German bank KfW have invested in UK small businesses through a securitisation of loans originated by Funding Circle.

The £207m portfolio has been issued by P2P Global Investments PLC, an investment trust managed by Pollen Street Capital.

Abror Ismailov, investment partner at Pollen Street Capital, said: “Our partnership with Funding Circle dates back to 2014 and embodies our aim to work with high-quality specialist businesses.

“Since the relationship began, P2P Global Investments has issued loans through Funding Circle with [an] original balance of over £400m.”

This is the second securitisation of loans originated by Funding Circle.

Sachin Patel, chief capital officer at Funding Circle, said: “This latest securitisation further validates the attractive, risk-adjusted returns that are being generated for investors in SME loans.

“Now investors of all shapes and sizes can support the growth of small businesses, which in turn drives much-needed job creation across the UK.”

Investment to small businesses on a net basis on the Funding Circle platform reached £155m in Q4 2017.

Funding Circle investors include 80,000 people, local authorities, the British Business Bank and financial institutions, such as pension and insurance funds.

“This significant commitment by the EIF and KfW, alongside other key investors, will help thousands of small businesses access the finance they need to expand and grow,” Sachin added.

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