Business lender and former peer-to-peer lending platform Funding Circle has announced a new partnership with Magnetar UK, which will provide more than £300m of funding to small businesses over a three-year period.
Magnetar UK is a UK affiliate of the US-based hedge fund Magnetar Capital. Magnetar has previously invested in alternative property lender LendInvest, co-signing a £150m funding deal with investment bank Nomura in September 2018.
Meanwhile, Funding Circle recently announced the extension of its partnership with Waterfall Asset Management, which will see another £1bn of new funding offered to small businesses on the platform.
“We’re pleased to welcome Magnetar UK to the Funding Circle platform,” said Lisa Jacobs (pictured), chief executive of Funding Circle.
“At a vital moment in the UK’s economic recovery, its commitment will see thousands of small businesses access the finance they need to invest, grow and create jobs in their communities. It’s great to see our technology and machine learning capabilities being used in this way by a wide range of investors.”
The Magnetar partnership will use Funding Circle’s technology and distribution platform to deliver funding to thousands of small- and medium-sized businesses across the UK.
“Magnetar UK has an established track record of successfully partnering with banks and other financial institutions, including fintech companies, to provide creative funding solutions to growing businesses,” said Aidan McKeown, portfolio manager at Magnetar UK.
“We are delighted to now join forces with Funding Circle to generate financing solutions that will continue to fuel entrepreneurialism across the UK and help SMEs thrive.
“Funding Circle has the right team, technology and expertise in place to create meaningful impact throughout the UK SME economy.”