Auxmoney attracts €250m institutional backing for consumer loans
Germany peer-to-peer lender Auxmoney is to invest alongside partners for the first time after securing institutional backing from Citigroup and Chenavari Investment Managers.
The financial services firms have committed to invest €250m (£216m) in Auxmoney’s consumer loan marketplace.
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“Our investment platform enables us to start new partnerships on a scalable basis and thus continuously expand our investor base,” Raffael Johnen, chief executive of Auxmoney, said.
“We are pleased to bring more strong partners to the Auxmoney platform.
“With this trend-setting investment, even more people benefit from the advantages of digital loans through Auxmoney. ”
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Hubert Tissier de Mallerais, senior portfolio manager at Chenavari, said there was insufficient provision of consumer loans from traditional providers and “Auxmoney offers more people access to loans and investors an attractive asset class for diversifying their portfolios.”
Sebastian Walf, managing director at Citigroup, described Auxmoney’s credit performance as “remarkably stable even in the coronavirus pandemic.”
Auxmoney also partnered with BNP Paribas last year, so that the French bank will fund loans through its consumer lending marketplace.