LoanClear has reached an agreement to buy lending data aggregator Brismo for an undisclosed sum.
As part of the deal, Brismo’s chief executive Rupert Taylor will take on the role of chief executive at LoanClear.
Brismo constructs lending performance metrics built on cash-flow level data. Since it launched in 2014, it has grown to cover more than 65 per cent of the UK and European peer-to-peer lending sector, and more than 50 per cent of the US market.
The acquisition will allow LoanClear to deliver more detailed insights into alternative finance lending trends across the UK and beyond.
“Brismo has standardised performance reporting across multiple originators and loan types,” Taylor said.
“Lenders can combine this analysis with their own processes to enhance risk pricing and improve reporting.
“With LoanClear’s pedigree in investor services, the combination can deliver insights that enable investors to capture more of the performance available from the loan asset class.
“This will drive adoption, improve liquidity, and encourage the virtuous cycle whereby investors are fairly rewarded for the risk they take, and borrowers can access reasonably priced capital.”
The businesses said the acquisition complements LoanClear’s investor servicing expertise, while Brismo’s performance measurement capabilities will allow the company to meet client needs across both the originator and investor side of the loan market.
The combined company provides services on over €60bn (£53bn) of loans globally.
“Brismo has built a unique set of tools that enable investors to confidently assess value in terms of risk and return,” said Tonko Gast, founder and majority shareholder of Dynamic Credit – LoanClear’s parent company..
“By combining this ‘pre-trade’ expertise in due diligence and benchmarking, with LoanClear’s established ‘post-trade’ services of allocation, administration, valuation and reporting, we can provide a full service to loan market participants.
“These services are crucial in a fast-growing private credit market where originate-to-manage is becoming a global phenomenon for consumer loans, SME loans, mortgages, etc.”
LoanClear is an investor servicing company which was spun out of Dynamic Credit. The business is headquartered in Amsterdam and the Brismo acquisition is expected to close in the third quarter of this year.
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