London Stock Exchange welcomes The Funding Circle SME Income Fund
The Funding Circle SME Income Fund is pleased to have listed on the main market of the London Stock Exchange, having raised £150m to lend to small businesses exclusively through the Funding Circle marketplaces, initially in the UK and US, and potentially thereafter in Continental Europe.
The SME Income Fund has accessed shareholders including asset managers, pension funds and private wealth managers, giving small businesses the opportunity to borrow from an even wider range of investors through the Funding Circle marketplaces. This marks an important step on Funding Circle’s journey to creating a global marketplace where any investor, big or small, can lend to small businesses across the world.
Funding Circle is the world’s leading online marketplace for business loans, matching small businesses who want to borrow with investors who want to lend. Since launching in 2010, investors at Funding Circle - including 44,000 people, national and local government, and financial institutions - have lent $1.6 billion to more than 12,500 businesses globally. The company has raised $273m in equity capital from the same investors that backed Facebook, Twitter, Airbnb and Wealthfront.
Samir Desai, CEO and co-founder of Funding Circle, said: "This is the first fund that will lend exclusively to small businesses through a marketplace lending platform, and it is the first time investors are able to get exposure to these loans globally. This and the low fee structure makes it a differentiated and attractive product for investors, and we are very pleased this has been reflected in the take-up."
Richard Boléat, Chairman of Funding Circle SME Income Fund Limited, said: “We are delighted with the very positive response to the Issue. The success of the Issue is a strong endorsement of Funding Circle’s marketplaces, and their focus on small business lending in the UK and the US. We believe that the Company can deliver attractive returns to investors, and that the Company can successfully grow with the Funding Circle marketplaces.”
The deal was brokered by Goldman Sachs International and Numis Securities Limited.