Peer2Peer Finance News
The UK's first peer-to-peer finance magazine for investors and the industry
  • Home
  • News
    • Personal Finance News
    • Industry News
    • SME News
    • Global News
  • Property
  • IFISA
    • IFISA Guide
  • Video
  • Open Banking
  • Cryptocurrency
  • Features
    • Joint Ventures and Promoted Content
  • Comment & Analysis
  • What is P2P?
  • Partners
  • Events
    • Past Events
  • P2P Power 50
    • Power 50 2020
    • Power 50 2019
    • Power 50 2018
    • Power 50 2017
  • Sign up to our e-newsletters
  • Magazine
  • Directory
  • Jobs
  • My Account
    • Manage Account
    • Change Password
    • Log In
    • Log Out
deals
August 6 2020

RateSetter deals timeline: Sales, IPOs and speculation

Michael Lloyd Industry News, News, Top 3 Ratesetter, RateSetter Australia

RateSetter’s acquisition by Metro Bank represents one of the most significant deals in the peer-to-peer lending space, but it is just the latest in a long line of deal activity – and rumours – at the P2P lending platform.

Peer2Peer Finance News looks at RateSetter’s history of acquisitions, mergers, IPOs, and more…

Read more: What’s happening at RateSetter?

2010: RateSetter launches

RateSetter launched to market a decade ago, allowing retail investors to fund a variety of loans through a unique model where they can set their own rates.

Over 84,000 customers have invested more than £3.9bn in the platform, which lends across the property, consumer and dealer finance sectors.

December 2014: RateSetter acquires P2P lender’s loanbook

The P2P giant took on the loanbook of fellow P2P lending platform GraduRates, which specialised in funding loans for postgraduate study.

GraduRates, which launched in 2010, had decided to run down its operations ahead of upcoming new regulation. These required platforms to make contingency arrangements to ensure that loanbooks would be managed to maturity in the event of a failure.

2016 and beyond: Bad debt sales

RateSetter has sold off books of its non-performing loans on a number of occasions.

In December 2016, the platform sold £2.1m-worth of non-performing loans to specialist debt purchaser 1st Credit, in what was said to be the first deal of its kind by a UK P2P lender.

In April this year, RateSetter sold £4.65m of non-performing loans – comprising two books of bad debt written across all years of lending – to an anonymous buyer.

Both times, the platform put the proceeds into its provision fund, which acts as a backstop for investors on the platform, covering their losses in the event of loan defaults.

2017 and beyond: IPO rumours

RateSetter UK was previously rumoured to be considering a public listing, with chief executive Rhydian Lewis saying in 2017 that he was eyeing an IPO as a pivotal step to solidify the platform’s position as an “investor brand” and the next “natural step” for the lender.

2020: RateSetter Australia’s IPO plans

In January it was revealed that RateSetter Australia was considering an IPO this year at the value of AUS$300m (£157.6m).

The P2P lender, which is minority-owned by the ‘big three’ UK P2P firm, reportedly sent a request for proposal to several investment banks and brokers the previous month.

If successful, RateSetter Australia would be listed on the Australian Securities Exchange. In June the firm announced it was still preparing for a stock market offering and had appointed advisers Highbury Partnership and Bell Potter to help the firm prepare for a flotation on the exchange.

August 2020: The Metro acquisition

After entering into exclusive talks in June, early this month RateSetter was acquired by Metro Bank for an initial consideration of £2.5m, with up to £9.5m to be paid out after the deal has been completed.

RateSetter will continue to operate as an independent platform under the Metro Bank banner.

Following completion of the acquisition Metro Bank will fund RateSetter’s unsecured personal loans while secured lending commitments will be funded by the platform’s P2P.

Covid-19 induced bad debts will cause banks to lose “somewhat less than £80bn” Construction and retail sectors take lion’s share of government-backed loans

Related Posts

ThinCats John Mould

Industry News, News, Property, Top 3

CrowdProperty unveils board changes and hunt for CFO

Business Analytics and Data Management System (DMS) giving key insights for corporate strategy. Concept with expert analyst building visualization with KPI and metrics from database information

Industry News, News, Top 3

4th Way gives its views on Zopa and Funding Circle returns

geld

Global News, Industry News, News, Top 3

October heralds record December despite Covid-19 crisis

Popular posts:

  • Government responds to P2P fraud query
  • The alternative lenders accredited for CBILS
  • SME lender warns many companies will not survive
  • Funding Circle to offer first and second draw PPP loans
  • Investors urged to look at ISA options ahead of…
  • The risk hunter: 4th Way’s Neil Faulkner
Back To Top
  • Home
  • Contact
  • About
  • Team
  • Advertising
  • Subscribe
  • Privacy
  • T&Cs
  • Disclaimer

Follow Us on Social Media

© Peer2Peer Finance News 2020
• Additional design by