Interesting news out today from the world of P2P lending. www.reuters.com reports that Chicago-based Victory Park Capital plans to launch a specialist investment vehicle through a London listing aimed at raising 200 million pounds ($310 million) to invest in online peer-to-peer lending ventures in the United States and Europe.
Victory Park said it intends to publish its prospectus for the initial public offering (IPO) of VPC Specialty Lending Investments around Feb. 26, aiming for a stock market debut on March 17.
Specialty lending platforms have prospered in the United States and Europe since the financial crisis, benefiting from regulation that has curbed certain types of bank lending to small businesses and consumers.
The market for such lending in the United States was nearly $7 billion in 2014, Victory Park says. In Britain, specialty small business lending was worth 749 million pounds in the same year, according to a study by the University of Cambridge and charity NESTA.
Victory Park said that VPC Specialty Lending Investments will target a net dividend yield of 8 percent, with quarterly payouts.
“With its significant sourcing network, Victory Park Capital Advisors has identified a strong pipeline of investment opportunities in which the company may invest,” said Brendan Carroll, co-founder of Victory Park Capital.
In this context, we find it extremely interesting to remember what Europe’s leading P2P lending provider TrustBuddy, which is listed on the Swedish stock exchange, said in connections with its FY 2014 report, published last week. TrustBuddy stated that it “anticipates increased attention from major global investors who want to gain ownership posts in the P2P sector in 2015, to secure a position for institutional lending.” We cannot interpret in any other way than that TrustBuddy is already in contact with interested players and Victory Park might just be one of them. Any such announcement would of course be very positive for TrustBuddy’s share price development.