Fintex Capital in talks to invest in more P2P platforms
Fintex Capital is in discussions with several peer-to-peer lending platforms to invest in their loans.
Vice principal of business development Adam Marks said the private debt focused asset manager, which has invested in German P2P platform Auxmoney since 2017 and an unnamed UK consumer P2P platform from 2018, is in discussions with platforms both in the UK and mainland Europe.
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“We’re in discussions with a number of different platforms and lenders out there and have money to burn,” he told Peer2Peer Finance News.
“We’re in discussions with both UK and [Continental] European platforms, there are definite opportunities in both spaces. We have euros and sterling so we can look at opportunities in both markets.
“After America, the UK P2P sector is probably the next biggest space. You can see from a number of other funds entering into the market doing deals, it is still very attractive, there is a plethora of new platforms out there doing new things. It’s a really interesting space and we’re really excited to be playing in this space and doing more deals.
“I think the UK is a great space especially in alternative finance. There are a lot of new business models. We are sector agnostic, we look at the same things across all sectors, such as strong underwriting and the management team. The marketplace is really interesting at the moment. There are lots of opportunities.
“Quite often we’ll have conversations with people starting out, some we speak to every six months and as they build their books up and do things properly, they then become ready for people like us to come in.”
Marks said Fintex Capital has links with large institutions it introduces to lenders it has backed to help them grow further.
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“If we like what they do, we will bring in one of our senior partners and change into a mezzanine position,” he said.
“It will grow the loanbook at a cheaper rate with cheaper cost of capital.
“It’s hard to find decent partners, if we have found someone good, we may as well carry on lending with them and take advantage and move into mezzanine.”
