Peer-to-peer lending platform Lending Works narrowed its losses in 2019, one year before it was acquired by alternative fund manager Intriva Capital.
The consumer lender posted losses of £1,875,641 for the year to 31 December 2019, compared to a £2,119,524 loss the previous year.
This brings the firm’s total losses since inception to £9,226,642 by the end of 2019, according to documents filed with Companies House.
The latest financial results also offered more details about the acquisition by Intriva Capital, a fund manager which focuses on special situations and distressed investment strategies across Western Europe.
“On 26 June 2020, the company entered into a sale and purchase agreement under which its entire share capital would be acquired by an alternative investment fund manager, subject to regulatory approval,” said the financial statement.
“Regulatory approval was obtained in November 2020, with the transaction completing on 15 December 2020. On completion, an initial equity investment of £2.5m was made into the company, with further funding to be made available as required to ensure that the company remains financially resilient and sustainable for the long-term and to support the continued growth of the business over time.”
The financial terms of the deal had not previously been disclosed.
The Lending Works platform has faced some challenges over the past two years. In November 2019, it adjusted its terms to reduce interest rates and put more money into its Shield contingency fund to make the platform more resilient.
From March 2020, the platform paused new lending in response to the Covid-19 pandemic.
In October 2020, it introduced negative interest rates for investors so that it could channel more money into its provision fund to mitigate anticipated higher credit losses.
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