EUROPEAN Risk Capital (ERC) has launched a £1bn multi-client debt programme for UK-based, mid-market non-bank lenders.
The programme – titled ‘CreditStream’ – has a minimum deal target size of £10m, making it primarily suited to mid-sized lenders including bridging and development lenders, second charge mortgagees, consumer and SME funders, auto/equipment finance companies, and fintech lenders. The maximum deal size can be in excess of £100m.
CreditStream will effectively offer wholesale funding access to the alternative debt capital markets, and aims to help fill the funding gap that exists in the UK’s alternative lending space.
“CreditStream is essentially a debt vehicle that ‘lends to lenders’,” said Tony Gioulis, ERC’s managing partner. “In the UK mid-market, non-bank finance companies continue to experience a significant funding void left by mainstream debt warehouse facilties and public securitisation markets traditionally accessed by large institutional lenders.
“CreditStream forms a compelling alternative to conventional wholesale finance sources and is consistent with our strategy of providing UK mid-market lenders with a flexible, cost-effective growth platform in a polarised credit environment.”
CreditSteam can be accessed by multiple lenders at any time. This will allow them to benefit from economies of scale, streamlined credit and documentation processes, and, as a result, lower risk-adjusted funding costs and enhanced return on capital.