MW EAGLEWOOD is raising $300m (£231m) for a private equity fund which will invest in peer-to-peer loans.
The fund will replicate the strategy of its London-listed investment trust P2P Global Investments (P2PGI), according to a source cited by Reuters, who first reported the story.
P2PGI offers exposure to 18 P2P platforms including Zopa, Lending Club and Funding Circle.
It is believed that the new private equity fund will target both small business loans and consumer loans, with an average loan size of approximately £9,000, with each loan picked according to strict investment criteria.
Unlike P2PGI, which is open to retail and institutional investors, the private equity fund will be open to institutional investors only. The new fund is looking to raise $300m by the end of 2016.
However, over time the fund is expected to surpass the value of the P2PGI trust, which has a current valuation of $1.2bn and offers returns of between seven and nine per cent.
Each investment will be locked up for a period of seven years.