We’re delighted to announce the launch of our specialist Fintech Lending Strategy, with commitments from global institutional investors. The first $100m tranche of the $300m strategy will be deployed immediately to leading fintech lenders to fund their loans to SMEs.
Having recently announced our significant investment into the SME lending space with custom built technology and an expert team, it’s great to be able to start offering immediate support to growing businesses. We’ve built a substantial pipeline and intend to start deploying funds straight away.
The funds will initially be deployed through a range of specialist fintech lenders based in developed markets, to the small businesses that need them most. In recent years, fintech lenders have originated hundreds of billions USD in loans, growing exponentially. With fintech valuations decreasing in recent months, founders are finding it ever harder to raise much-needed capital to float these loans without significantly diluting their equity. The beauty of our fintech fund is that it’s a non-dilutive, debt investment model, protecting the fintech’s equity and allowing them to quickly offer small businesses the finance they need to succeed.
With the new fund, Channel aims to be a fast and efficient partner for fintech lenders. We offer strategic advice on structure as well as flexible capital that can scale rapidly with growth.
Paul Wilson, Channel’s Chief Investment Officer, said:
“The investment into our data-driven lending fund is a significant step forward for Channel – it will see us work closely with other digital platforms to facilitate loans for SMEs that are faster, simpler, and don’t dilute their business. Indeed, the deployment of dedicated funds like this is crucial in supporting and fuelling the ongoing growth of the global SME sector.
“The backing our fund has received underlines investors’ growing appetite within the fintech lending space. Moreover, it’s a clear demonstration of the trust investors have in Channel’s track record of managing their investments.”
Walter Gontarek, CEO of Channel, added:
“Providing much-needed capital to the often-overlooked SME sector has always been a goal at Channel. Fintech lending platforms are a critical part of that – making it faster and easier for deserving SMEs to access loans.
“We have been tirelessly enhancing our own digital lending capabilities and have exciting developments coming in that space. Meanwhile, the additional, sizeable investment into our Fintech Lending Fund will see us work with a greater number of tech-powered lending platforms, firstly in Europe and North America, to see capital deployed at pace to the SME community.”
Not only does this new fund offer a compelling funding option for both the fintech lenders, and the SMEs they serve, but it also presents an exciting investment opportunity for our clients, as demand for this funding model continues to outpace supply.
To discuss the opportunities for investors in this space, please speak with Paul Wilson, our Chief Investment Officer: paul.wilson@channelcapital.co.uk
At Channel, we provide high-quality, privately originated asset-backed investment products by originating, structuring, and managing investments for leading institutional investors. We specialise in opportunities from issuers in specialty finance and the innovation economy.
For borrowers, we are a trusted partner in growth. Our expertise in structuring tailored financing solutions ensures you get the capital you need to scale, with a streamlined process and terms that work for your business. We are committed to delivering flexible, efficient, and growth-focused funding that empowers your success.
