Funding Circle announces groundbreaking £132 million investment into British small businesses
Today we’re pleased to announce that for the first time, a global investor will be investing in small business loans through the Funding Circle UK marketplace.
A private fund, managed by New York-based KLS Diversified Asset Management, will be investing £132 million in loans to UK small businesses. The KLS-managed fund will invest in whole loans across all risk bands. They will not compete with any individual investors lending on partial loans.
Today’s news is another significant step on the journey to creating a stable and sustainable global marketplace, where creditworthy businesses borrow directly from a diverse range of investors.
Over the last four years we have seen a range of investors join Funding Circle, and today more than 36,000 individuals, the government-backed British Business Bank, 10 local councils, the University of Huddersfield, and other institutions are all helping businesses access the finance they need to grow.
As discussed previously, we have also recently received a lot of interest from institutions, such as pension funds, insurance companies, family offices and hedge funds, who would like to join Funding Circle. To enable these types of larger investors to lend to small businesses, we introduced whole loans in April this year.
Whole loans enable larger investors, like KLS, to participate on Funding Circle whilst not affecting individual investors’ Funding Circle experience, You can read more about why we introduced whole loans in this blog post, and you can view what proportion of loans are whole or partial by downloading our loanbook on the statistics page.
Today’s news enables us to continue to grow and meet the demand from UK businesses. In November alone, investors lent a record £35 million to small businesses across the UK. As we continue to grow we will manage the allocation between partial and whole loans so that there is consistently enough lending opportunities for all investors. A more and varied range of investors means we increase the amount of lending opportunities for everyone. The amount of lending by individual investors continues to increase this year and we expect it to continue as we grow. Individual investors are part of our DNA at Funding Circle and core to the future success of the company.
The Funding Circle team