PEER-TO-PEER investment manager Goji is launching a white label offering for investment providers that have been curtailed by recent regulatory changes, so that they can create their own alternative asset products for customers.
Goji said its new ‘platform as a service’ should be of particular interest to managers of Venture Capital Trusts (VCT), Enterprise Investment Schemes (EIS) and Business Property Relief (BPR) schemes. The investment managers will be able to use Goji’s platform to offer Innovative Finance ISAs (IFISA) and self-invested personal pension wrappers to investors.
VCTs and the two schemes focus on smaller, privately owned, or junior exchange listed companies.
Read more: Goji steps up its focus on adviser market
At the start of this year, HMRC published guidance on a clause to an existing Bill called the risk-to-capital condition, which will push VCTs, EIS and BPRs into riskier, growth-oriented companies and exclude them from investing in anything that could be construed as a capital preservation arrangement.
This has made getting traditional financing far trickier for these types of investment managers, as they now have to convince lenders to provide money even though they are legally obliged to increase the risk in their own portfolios.
“IFISAs are an easy way for advisers to access the high yields in the direct lending sector,” said Jake Wombwell-Povey, chief executive of Goji, on Wednesday. “The wrapper has captured the attention of BPR, EIS and VCT managers, who are being excluded from their traditional investment avenues.
“These managers can now use Goji’s platform to create their own direct lending product set, leveraging their own brands whilst saving money and time on building their own technology.
“Our offering enables managers to focus on what their best at, investment management, whilst Goji’s digital and operational expertise supports a fantastic customer and adviser experience.”
Goji said it already has three investment managers using the platform to power their own IFISA products.