Fintex Capital is in talks 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 anonymous UK consumer P2P platform from from 2018, is in talks with platforms in the UK and mainland Europe.
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“We are in talks with a number of different platforms and lenders and we have money to spend,” he said. News Peer2Peer Finance.
“We are in talks with the UK and [Continental] European platforms, there are definite opportunities in both spaces. We have Euros and Pounds so we can look at opportunities in both markets.
“After America, the UK P2P sector is probably the second biggest space. You can see a number of other funds entering the market doing transactions, it’s still very attractive, there has a plethora of new platforms doing new things. It’s a really interesting space and we’re really excited to play in this space and do more offerings.
“I think the UK is a great space, especially in the area of alternative finance. There are a lot of new business models. We’re industry agnostic, we’re looking at the same things across industries, like a strong underwriting and management team. The market is really interesting right now. There are a lot of opportunities.
“Quite often we have conversations with newbies, some we talk to every six months and as they build their books and get it right, then they become ready for people like us. “
Marks said Fintex Capital has links with large institutions which it introduces to lenders it has backed to help them grow further.
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“If we like what they’re doing, we’ll bring in one of our senior partners and move up to a mezzanine position,” he said.
“It will increase the loan portfolio at a cheaper rate with a cheaper cost of capital.
“It’s hard to find partners worthy of the name, if we have found someone good, we might as well continue to lend with him and take advantage of it and move up to the mezzanine.”