Funding Circle £250m securitisation of SME loans unveiled
21 November 2019
The £250m portfolio, built up by Funding Circle and Waterfall Asset Management, brings the total amount of UK Funding Circle loans securitised to £1 billion.
This deal will open up the small business loans asset class to an even wider range of investors such as insurance companies and pension funds.
Today’s announcement is further recognition of the online lending model’s ability to open up deep pools of capital to small businesses, creating more choice and competition in the small business lending market. In turn this creates a more stable ecosystem and reduces dependency on bank lending, as recommended by the Bank of England and European Central Bank.
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. We look forward to continuing to work with Waterfall to support the growth of small businesses across the UK, driving much-needed job creation across the country as a result.”
Launched in 2010, Funding Circle is helping to spark a global revolution in the way small businesses access finance, disrupting the traditional model of banking. To date, Funding Circle investors have lent £8.1 billion to more than 77,000 businesses in the UK, US, Germany and the Netherlands. By bringing together industry-leading risk management and cutting-edge technology, creditworthy businesses typically access the capital they need to grow in days rather than months.
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About Funding Circle
Funding Circle (LSE: FCH) is a global SME loans platform, connecting SMEs who want to borrow with investors who want to lend in the UK, US, Germany and the Netherlands. Since launching in 2010, investors across Funding Circle's geographies - including more than 93,000 retail investors, banks, asset management companies, insurance companies, government-backed entities and funds - have lent more than £8.1 billion to over 77,000 businesses globally.
About Waterfall Asset Management
Waterfall is an SEC-registered institutional asset manager focused on structured credit (asset-backed securities and loans) and private equity investments with approximately $8.5 billion in assets under management. Waterfall was founded in 2005 by Tom Capasse and Jack Ross, two individuals who were early leaders of the ABS industry, and who together have over 60 years of proven ABS/Loan credit analysis, trading, banking and servicing experience. Tom Capasse and Jack Ross started the ABS Group at Merrill Lynch in the 1980s and conducted the first ABS issuances for many of the more than 40 ABS sectors in which Waterfall invests. Waterfall benefits from a global presence, with approximately 150 employees in USA, UK and Ireland, and currently runs primarily three investment strategies: high-yield asset backed securities, loan opportunity strategy and small balance commercial loans.