Consumer lending platform Lendable has launched a closed-ended fund targeting up to £350 million ($425 million; €382.9 million).
The Lendable Credit Opportunities Fund is a Luxembourg-domiciled vehicle launched in partnership with Credit Suisse that will be marketing to MiFID-eligible professional investors including high-net-worth individuals, family offices, pension funds and other institutions.
Lendable said it will have £150 million of assets under management by the end of the year with funds already raised from 10 investors across seven geographies.
The fund will have a three-year initial investment period which will be followed by a further three-year reinvestment period. It intends to grow to its final size of £350 million by the end of 2020.
It will invest primarily in Lendable-originated consumer loans from its lending platform but will also seek other credit investment opportunities in the UK consumer lending sector. It is aiming to provide returns in the mid-teens.
Lendable provides loans to consumers via an online portal, lending between £1,000 and £20,000 over one to five years using automated underwriting technology. It raises capital for its loans from institutional, sophisticated and high-net worth investors.
Rory McHugh, chief capital officer at Lendable, said: “This fund lets professional investors access the same investment opportunity currently available only to the largest institutional investors. We also look forward to meeting with other FinTech and Consumer credit platforms seeking debt finance as we grow the asset management side of this business.”