Funding Circle strengthens partnership with Waterfall Asset Management through a new £700 million deal

Core Insights - Funding Circle, the UK's leading SME finance platform, has announced a significant transaction with Waterfall Asset Management and Citi, aimed at enhancing its funding capabilities for small businesses [1][3] Funding Agreement Details - The agreement includes a £700 million forward flow commitment from Waterfall over two years, along with senior financing from Citi and the purchase of an existing loan portfolio valued at approximately £120 million [2] - This transition from balance sheet to institutional funding is part of Funding Circle's strategy to test new propositions before scaling them with partners [2] Partnership Significance - The transaction highlights the long-term partnership between Funding Circle and Waterfall, which began in 2018, with Waterfall surpassing £3 billion in total lending through Funding Circle's platform [3] - This deal strengthens Funding Circle's position as a platform lender and enhances its capacity to meet the increasing demand for SME credit [3] Executive Statements - Dipesh Mehta, Chief Capital Officer at Funding Circle, emphasized that expanding partnerships reflects confidence in their credit underwriting and capital markets expertise [4] - James Cuby, Head of Europe at Waterfall, expressed satisfaction in deepening the relationship with Funding Circle and confidence in its technology and credit assessment capabilities [4] - Sebastian Walf, Managing Director at Citi, stated that Citi is pleased to support the funding agreement through senior financing [4] Company Overview - Funding Circle has provided approximately £17 billion in credit to over 125,000 businesses in the UK since its establishment in 2010 [5] - The platform offers a unique customer experience for SME borrowers through technology and data, while providing institutional investors access to an alternative asset class with attractive returns [6]