Victory Park looks to raise GBP 200 mln to invest in P2P lending

Victory Park Capital Advisors is following the lead of Mayfair hedge fund Marshall Wace in entering what it hopes will be a lucrative source of new loans.

Victory Park has been keen to expand in the UK. It recently struck a deal with UK peer-to-peer finance platform operator Assetz Capital to lend up to GBP 150 million to its customers.

Until recently, peer-to-peer lending in Britain has mostly consisted of members of the public making deposits which are then lent out to small businesses or individuals.

Platforms such as Zopa and Funding Circle check the borrowers’ credit worthiness and act as a conduit for the people offering the loans.

In 2014, however, institutional investors have been joining as lenders too and the practice is commonplace in the US.

Victory Park is reportedly targeting an 8% dividend yield from its fund. Similar floats are expected to follow.