Growth Street to return 100pc of investor funds
Growth Street investors are set to receive their balances back in full as the peer-to-peer business lender prepares to close.
The platform announced plans to close in June 2020 and is in the process of getting its loanbook repaid, known as a resolution event.
It will enter a “solvent wind-down” once all its finance facilities are repaid.
Kim Goetzke, chief operating officer of Growth Street said the lender has returned funds to investors faster than expected.
“Returning as much of each investor’s assigned balance, as quickly as possible, has been a core focus since we declared the resolution event in June of last year,” Goetzke said.
“We have been able to return investor funds faster than expected due to the success of the recovery process and it is testament to the quality of our systems, underwriting, monitoring and recovery processes.
“I want to thank our team for their efforts – returning 100 per cent of assigned balances is a great source of professional pride for us. I also want to thank our investors for their patience and support whilst we navigated this process.”
Following this announcement, Growth Street will move to streamline business operations further to collect against outstanding balances and meet its obligations to its remaining creditors.
Its latest loanbook data as of 4 December shows there is £50,400 on average left to repay by borrowers.
That is down from £179,451 on average when the lender first announced its plans to close.
Growth Street entered a 90-day liquidity event in March last year to stop withdrawals and keep funds invested.
It then decided to close to retail investors in June and focus on getting its loanbook repaid as part of a resolution event.
However, efforts to secure institutional backing have since failed, so the platform has instead decided to close once loanbook repayments are complete.
The lender had previously announced a restructure and layoffs in November 2019 which also included the departure of its founder and chief executive Greg Carter.
