Assetz Capital has made a pitch for RateSetter’s retail investors, telling them that they “have a home with us”.
This follows the news that peer-to-peer lending platform RateSetter has been acquired by Metro Bank. Any future lending is set to be funded from the bank’s own balance sheet, although RateSetter will continue to fund commitments on its secured loans.
“We expect that means RateSetter P2P investors will not be getting new loans to invest in from later this year and that those investors will be seeking replacement investments to beat inflation and the diminishing returns of most other investments,” said Stuart Law (pictured), chief executive of Assetz Capital.
“Assetz Capital has delivered and continues to deliver strong rates of interest at similar levels to RateSetter. Our three main accounts – whilst not delivering the withdrawal speeds that our investors have enjoyed in normal conditions – have paid rates of return each month from 3.75 per cent, per annum (equivalent) throughout the crisis.
“We are one of the few retail-friendly P2P platforms with scale, and with a proven business model, with so many others now closing their doors to retail investors. We have continued to receive new investment throughout the crisis and have plans to scale up significantly in the months to come.
“RateSetter helped establish the UK P2P market and deserve a lot of credit for what they achieved. While we are sad to see them exit, we remain fully committed to our retail investors and the principles that underpin peer-to-peer lending.”
Law has estimated that there may be 80,000 retail investors looking to find a new home after RateSetter is acquired by Metro Bank.
Read more: What’s going on at Assetz Capital?