Type: Investor Alternative Finance
Investor Alternative Finance - geography: United Kingdom, United States
CO. no.: 08805459
P2P Global Investments
The Company?s investment objective is to provide shareholders with an attractive level of dividend income and capital growth through investments, directly and indirectly, in consumer and SME loans and in corporate trade receivables that have been originated through online peer-to-peer (P2P) platforms in the UK, US and Europe.
P2P lending is a fast growing area of finance that matches borrowers and lenders via low cost online platforms. It covers various debt classes including consumers, SMEs and corporates and through dis-intermediating more traditional financial institutions such as banks, allows both borrowers and lenders to achieve attractive interest rates.
The Company may also invest in equity stakes in P2P platforms themselves, whether via direct equity investments or through the acquisition of warrants or other convertible securities.
The committee said in a resolution this week that they want CMU building blocks, such as diverse investment choices, risk mitigation and clear investment information across the EU, to be in place by 2018 to complement bank financing.
Non-bank sources of finance should be developed alongside well-established bank financing. EU businesses will be less vulnerable in the event of tighter bank lending if market participants are able to raise debt, equity and venture capital directly from the market, it said.
Effective cross-border insolvency rules will be needed along with a recovery and resolution framework for non-banks, especially 'central counterparties' who work as intermediaries between sellers and buyers and manage the risk in case one party defaults, the committee said.
After much hint dropping and consideration, P2PGI has confirmed its intention to raise in excess of £250m in a new C Share issue.
The announcement comes following significant investor demand, and will likely close in late July 2015. As we discussed when the whispers of this issue first surfaced, existing C Shares will be converted into ordinary shares prior to the issue of the next batch of C Shares. P2PGI will supposedly have fully deployed the £250m that was raised in the last C Share issue by the end of June.