<
p>A peer-to-peer lender has announced plans to raise £150m via an initial public offering (IPO).
Funding Circle’s SME Income Fund will provide investors with access to a range of loans through its marketplaces and will focus on lending to SMEs in the UK and the US.
The news comes after other key P2P players RateSetter and Zopa both announced that they were predicting future losses despite seeing an increase in revenue.
Richard Boléat, Chair of Funding Circle SME Income Fund, said: "Funding Circle SME Income Fund is a differentiated new entrant to the alternative lending sector, with unrivalled access to the Funding Circle marketplaces, a focus on small business lending in the UK and US, a conservative gearing policy and a competitive cost structure."
Funding Circle is also in discussion with the European Investment Bank regarding a project to provide financing for UK SMEs.
Samir Desai, CEO of Funding Circle, added it would be the first fund to exclusively lend to small businesses through the Funding Circle marketplaces.
“[It] is a response to the huge demand we're seeing from a wide range of investors for small business loans,” said Samir.
“Today marks an important step on our journey to creating a global marketplace where any investor, big or small, can lend to small businesses across the world."
A peer-to-peer lender has announced plans to raise £150m via an initial public offering.
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