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Rothschild backs 'alternative' lender as bank funding runs dry

Rothschild backs 'alternative' lender as bank funding runs dry

Lord Jacob Rothschild's RIT Capital Partners has taken a position in a peer-to-peer lender aimed at helping its clients avoid dealing with banks.

Lord Rothschild's RIT now owns a stake in Zopa, according to reports, which it bought into in the hope it will be able to grab share in a tight credit market dominated by traditional lenders.

Zopa, which is based in the UK, allows clients to lend to one another over the internet.

'Following the 2008 crisis many of the banks remain under-capitalised.  In these circumstances alternative forms of credit will be developed on significant scale...this is happening,' Lord Rothschild (pictured) said, speaking to the Financial Times.

The size of RIT's stake in Zopa is not known, as the trust bought into it via Augmentum Capital, a technology fund in which £1.8 billion RIT is the only investor.

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