Marshall Wace's peer to peer investment trust will target annual net asset returns of 5-15% and 6-8% income through 'exposure to the new generation of non-bank finance,' as traditional banks become increasingly reluctant to lend.
The first UK listed vehicle of its kind, P2P Global Investments will invest in loans that have come from peer to peer lending, which became FCA regulated last month.
Now that high street banks are forced to hold higher levels of capital, online peer to peer lending has become more popular as it allows borrowers and lenders to communicate directly, with the lender potentially benefiting from lower rates.
The P2P trust has agreements with global platforms, including UK loan platform Funding Circle, and will buy loans produced by these companies using money generated by investors.
The trust announced its intention to float on the London Stock Exchange last Friday, with a minimum investment of £1,000. The vehicle is looking to raise £200 million, but could lift this to £300m.
It will distribute more than 85% of its profits via dividends, with a yield target of at least 6-8% per annum.The management fee is 1% of net asset value per annum,with a yearly performance fee of 15% with a high water mark.
Marshall Wace is a hedge fund manager running £18 billion, while sub-manager Eaglewood Capital Management is an investment adviser specialising in peer to peer lending.