Today we have announced that the Funding Circle SME Income Fund has successfully raised its first round of money to lend through the Funding Circle marketplaces, and will shortly list on the London Stock Exchange.
Through the SME Income Fund, shareholders get exposure to Funding Circle small business loans globally across its marketplaces, initially in the UK and US and potentially thereafter in Continental Europe.
The fund will buy up to 35% of loans originated through the Funding Circle marketplaces, and will only buy whole loans alongside larger investors. It will therefore not directly compete with retail investors, and loans will be randomly allocated to the fund in the same way they are randomly allocated as whole or partial loans.
In this first round, the SME Income Fund has accessed shareholders including asset managers, pension funds and private wealth managers, giving small businesses the opportunity to borrow from an even wider range of investors through the Funding Circle marketplaces. This marks an important step on our journey to creating a global marketplace where any investor, big or small, can lend to small businesses across the world. A diverse range of investor capital will make the marketplace more sustainable, helping to protect small businesses in the future.
Currently we can only facilitate direct lending within each country due to different regulatory environments. In addition, the shares in the SME Income Fund have not been and will not be registered under the US Securities Act of 1933 and may not be offered or sold into the United States or to US persons.