Assetz Capital (nearly) tops Seedrs secondary market sales

Bizarrely its actually a piece about Seedrs secondary market, the contractual obligation Assetz fluff piece is here www.p2pfinancenews.co.uk/2021/10/07/assetz-capital-highlights-role-of-eco-homes-in-meeting-demand-for-properties/

Do you mean Assetz capital investors who dont seem to baulking as otherwise the shares wouldnt sell, or lenders, who equally dont seem to be baulking or it wouldnt be so difficult to invest money in the platform? AC problem (same as most platforms) is too much money & not enough loans

I keep looking at this and find it interesting as an Assetz equity holder.  I originally invested (2014?) as I thought it was a good model and got sucked in to the fintech craze.  In hindsight it's not really a fintech company just a finance company with private investors on an IT platform (i.e. its not really doing anything that's game changing.)

Clearly the successful entrants quickly realised that to scale and create increasing equity values was to essentially change into a bank model where you can create leverage through your asset/liability mix and don't just match loans to deposits (we can see Zopa going down this road although it's probably too late but maybe not for the equity holders!)

This is not to say that Assetz doesn't have value.  It is profitable and it's origination is accelerating.  The key though is the shortage of housing stock and never ending increase in asset values which really helps to underpin the valuations and allows better outcomes in distressed scenarios.  How the company copes if the housing bubble ever pops is very much open to question (who knows when if ever?)

If Assetz can continue to originate at high levels and remain profitable then at a current valuation of roughly £50m it would look a good buy to any PE house or even banks who wished to grow assets through acquisition.  If you think the UK housing market will remain buoyant then I think the discounted Seeder shares are a good buy but then I am somewhat talking my own book!
 

I read somewhere that AC were going to do a further share offering.  If that would qualify for EIS -- Does anyone know if they still have capacity for more EIS shares? -- then potential investors at Seedrs could be waiting for that, and that might explain why discounts are necessary to sell shares on the Seedrs SM because those obviously don't come with EIS share benefits.