Peer-to-peer (P2P) lender ThinCats is to bring £200m worth of funding from institutional investors towards SME finance.
Waterfall Asset Management and ESO Capital have committed £70m and £30m respectively. The remainder of the funding is to be provided by Waterfall and other institutional investors.
In a statement, ThinCats has said that institutional funders will be treated on the same basis as regular retail investors. A decision by Waterfall or others to invest in a loan, the statement reads, “should not be seen as a form of endorsement, and retail investors should continue to undertake their own due diligence.”
The company added: “It is a massive vote of confidence in our team and processes, and comes alongside our recent push to recruit more experienced Origination Managers, covering the length and breadth of the country, to seek out the many SMEs that are in need of funding.
“This is the first phase of the group’s strategy over the next two years, and is aimed at putting us in a great position to ramp up our loan origination efforts, something that we know has been an issue for our investors in recent months.”
EFS Capital, a sister company of ESO Capital from above, has owned a majority share in ThinCats since 2015.