October’s latest debt fund receives €35m from EIF & Invest-NL
European peer-to-peer lending platform October has received a €35m (£30.6m) capital injection from the European Investment Fund and Dutch impact investor Invest-NL into its latest debt fund for small businesses.
This is the fourth time the EIF has invested in a small- and medium-sized enterprise (SME) fund run by October. The €20m commitment from the EIF is backed by the InvestEU programme, which helps to mobilise private investment for the benefit of the EU’s strategic priorities like the European Green Deal.
Invest-NL, a Dutch impact investment company backed by public funds, has invested €15m.
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The SME V fund was launched in September 2022 and has attracted €100m in total commitments. It is October’s first fund to be labelled Article 8 under the Sustainable Finance Disclosure Regulation, meaning it invests in firms with excellent environmental or social qualities.
The fund will invest in small businesses across France, the Netherlands, Italy, Germany and Spain.
“This renewed commitment for October testifies not only to the track record of this fund manager, but also to the goals that the EIF shares with its clients,” said Marjut Falkstedt, chief executive of the EIF.
“On the whole, the money we make available for SMEs safeguards and creates many jobs, making the EIF’s role in the European economy an important one.”
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Patrick de Nonneville, chief executive of October, added: “Key to this new fund is our data-driven ESG X-Ray module, to integrate ESG criteria in our investment process without burdening SMEs with additional paperwork.”
The fund is aiming to lend €400m over the next two years and expects to grant more than 3,000 loans. It will target investments in 15 different sectors with loans ranging from €10,000 to €2m, with an average size of €130,000.
Pricing will be reviewed on a monthly basis for the fund, which will also make monthly distributions.
October has lent more than €965m to 3,800 small businesses since launching eight years ago.
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