Lendix, the French marketplace lender, has received agreement from the Autorité
des Marchés Financiers (AMF) to launch the first small to medium-sized enterprise (SME)-dedicated European Long Term Investment Fund (ELTIF).
The European regulation which gave birth to the ELTIF vehicle was made applicable by member states in December 2015 and aims to promote long-term investment in the real economy as part of the 2020 Capital Markets Union action plan.
While providing less liquidity than investments in transferable securities – as they come with a commitment for a certain period of time – ELTIFs can provide regular income streams for pension funds, insurance companies, foundations and individual investors that rely on the regular cash flow that an ELTIF can produce.
“This new fund format, passportable everywhere within the European Union, fits perfectly with the core business of Lendix and in particular the opening of our platform across Europe,” said Olivier Goy, president and founder of Lendix.
The Lendix SME Loans fund II is seeking to raise between €50 million and €75 million and has a number of investors already including CNP Assurances, Zencap AM (OFI Group) and the Prêtons Ensemble fund managed by Eiffel Investment Group and sponsored by Aviva France and AG2R La Mondiale.
Lendix allows SMEs to borrow between €30,000 and €1.5 million over periods ranging from three months to 84 months to finance their development. The average size of loan made by the firm is €250,000.
Earlier this month, Lendix won approval to operate in the Spanish market from the CNMV financial regulator. It is planning to launch in the country in the fourth quarter and said it would be recruiting six new hires there this year and would consider 10 more next year.