Alt-Lending Conglomerate TruFin Lands $97M In IPO

An alternative lending conglomerate based in the U.K. just secured more than $97 million through an initial public offering.

TruFin reportedly raised the funds via its float on the London Stock Exchange, according to BQ Live on Tuesday (Feb. 13). The firm is the holding company for an array of FinTech companies operating in supply chain finance, invoice finance and the dynamic discounting market. Its units include Distribution Finance Capital, Satago and Oxygen Finance, while it also owns a minority stake in peer-to-peer (P2P) lender Zopa.

The companies were grouped together between 2014 and 2017 after investments and acquisitions by Arrowgrass Master Fund Ltd., reports noted. Oxygen Finance acquired Satago last year in a deal Ben Jackson, Oxygen CEO, said would enable the companies to “be well-positioned to lead the market in delivering modern, integrated payment and receivable strategies for large buying organizations and their suppliers, SMEs included.”

TruFin Chief Executive Officer Henry Kenner said, “The highly experienced management team at TruFin and our group companies are passionate about the opportunities to grow our niche lending businesses. Many borrowers are neglected by banks and still face expensive funding and capital. We intend to deliver value by taking advantage of current market disruptions and new financial technologies, while keeping a focus on the distribution of niche lending products.”

The U.K.’s alternative lending market is one of the world’s most robust, with government support of the industry, landing in the form of new rules that require traditional lenders to refer would-be borrowers to alternative players should they be rejected for a loan. The new rules, enacted in 2016, have also encouraged traditional banks to collaborate and partner with alternative finance platforms.