Funding Circle signs GBP500 million funding agreement with Castlelake
Funding Circle Holdings PLC on Tuesday announced a new funding agreement with alternative investment manager Castlelake LP that will provide up to £500 million of committed funding to UK small businesses over two years.
The London-based lending platform, which focuses on small and medium-sized enterprises, said the agreement welcomes Minneapolis, Minnesota-based Castlelake as a new investor to its platform.
Funding Circle said its institutional funder pool includes banks, asset managers, pension funds, insurance companies and government-backed entities. It said the pool supports its capital-light business model and allows it to scale efficiently.
Funding Circle said more than 15 years of investment in its technology and data capabilities has created proprietary credit models that it says discriminate risk three times better than traditional bureau scores.
Chief Capital Officer Dipesh Mehta said: "We're delighted to welcome Castlelake as a new investor to the platform. Continuing to attract new institutional capital reflects the performance of our technology, data and credit expertise, and the attractive returns our platform has been able to deliver.
"This agreement further expands our deep and diverse funding base and means we can say yes to even more small businesses, putting vital funding to work to support the real economy and drive economic growth across the UK."
Shares in Funding Circle Holdings were down 0.1% to 232.75 pence per share on Tuesday morning in London. The company has a market capitalisation of £689.6 million.
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