CreditStream – the debt programme operated by European Risk Capital – has doubled its minimum loan size from £10m to £20m, in response to increased competition in the mid-sized loan space.
The maximum loan size remains at £100m.
The move was prompted CreditStream’s “renewed focus on larger facilities driven by institutional investor appetite”, as well as the rising competition from government-backed loans through programmes such as the coronavirus business interruption scheme (CBILS).
“The unprecedented impact of the pandemic on the current economic climate has culminated in significant financing demand from sub-midmarket lenders, now mostly serviced through recent government-supported funding schemes,” said Tony Gioulis, European Risk Capital’s managing partner.
“We therefore decided to focus on larger transactions with a view to prioritising the CreditStream programme for non-bank lenders capable of capitalising on their operational size, portfolio quantum, and overall track record.”
CreditStream was launched in April 2019, with a remit to provide £1bn in wholesale debt funding to UK-based lenders, effectively making it a debt vehicle that ‘lends to lenders’.
To date, it has worked with asset-based lenders including bridging and development lenders, second charge mortgagees, consumer and business funders, auto and equipment finance companies, and fintech lenders.