|
|
Post by andrewholgate on Jan 21, 2015 6:29:07 GMT
Today we have made an announcement in the Times about a partnership with Victory Park Capital of Chicago. Like other P2P platforms, in order to challenge the established normal finance houses we have to get scale and to do this we need institutional help. To that end, we have partnered with VPC in order to help grow AC. times article
The question on your lips is will this squeeze out the crowd? In short no. The crowd will still get a substantial deal flow through 2015 and there will be no deterioration in the credit quality as VPC will get a completely random selection of our deals. What it will mean is we are able to attract more borrowers as there is certainty of funding. This will then increase the offering to the crowd and provide more diversity. It also guarantees the long term viability of AC and places us just on the heels of the UKs bigger platforms. Will the big 3 be the big 4 now? I'm Not going to make further comment on this today but it will be a good thing for all. andrew |
|
pikestaff
Member of DD Central
Posts: 2,136 
Likes: 1,484
|
Post by pikestaff on Jan 21, 2015 8:02:41 GMT
|
|
kermie
Member of DD Central
Posts: 689
Likes: 462
|
Post by kermie on Jan 21, 2015 8:13:56 GMT
Fixed: linkIt's behind the times pay-wall. The general press release can be found easily enough: yahoo |
|
shimself
Member of DD Central
Posts: 2,561
Likes: 1,170
|
Post by shimself on Jan 21, 2015 10:53:03 GMT
I was just about to pm ellray to change it to V***** P*** C**** but I see there's no need.
|
|
|
|
Post by Deleted on Jan 21, 2015 10:57:06 GMT
Not really sure how a larger money supply will generate more demand (demand comes from having good salesmen and a good offering) but hey you guys are the experts and you have to do something to catch up. Since the last coms where I mentioned management distraction there has been no new items to bid on (unless you count the repeat penthouse build in Cheltenham that has been rolling around for some time). Now we were promised a large pipeline...... I still think you need to focus on the knitting. Moans over; CONGRATULATIONS for getting Victory on board.  |
|
oldgrumpy
Member of DD Central
Posts: 5,087
Likes: 3,233
|
Post by oldgrumpy on Jan 21, 2015 11:05:21 GMT
Will "whole loans" be allocated for VPC, like FC now do whole loans? Or will VPC take substantial "chunks", especially of all the larger loans, thus allowing us small fry to be involved in everything?
|
|
agent69
Member of DD Central
Posts: 5,625
Likes: 4,195
|
Post by agent69 on Jan 21, 2015 12:29:30 GMT
What it will mean is we are able to attract more borrowers as there is certainty of funding. Does this mean that the current (newish) system with underwriters isn't working as they don't have sufficient funds to provide certainty of funding?
|
|
|
|
Post by pepperpot on Jan 21, 2015 12:53:42 GMT
What it will mean is we are able to attract more borrowers as there is certainty of funding. Does this mean that the current (newish) system with underwriters isn't working as they don't have sufficient funds to provide certainty of funding? As AC work with at least one person who feels comfortable underwriting a £3.4m deal on their own, I don't see sufficiency of funds as the problem. It's more a question of attractiveness for an individual. Institutions are always going to have more funds looking for a home than individuals and VPC have signed up for £150m of business, which from a borrowers point of view, is where the certainty comes from.
|
|
mikes1531
Member of DD Central
Posts: 6,452
Likes: 2,320
|
Post by mikes1531 on Jan 21, 2015 18:17:07 GMT
Does this mean that the current (newish) system with underwriters isn't working as they don't have sufficient funds to provide certainty of funding? As AC work with at least one person who feels comfortable underwriting a £3.4m deal on their own, I don't see sufficiency of funds as the problem. It's more a question of attractiveness for an individual. Institutions are always going to have more funds looking for a home than individuals and VPC have signed up for £150m of business, which from a borrowers point of view, is where the certainty comes from. What I'd like to know is how many loans AC have brought forward that their underwriters failed to back? I can remember a few, such as the luxury yacht hire scheme, but most of those that failed showed up as being flawed during the crowd DueDil so probably didn't deserve funding. I wonder whether VPC would have been willing to fund those?
|
|
