P2p Global Investments Share Discussion Threads

[davebowler] 22/12/2014 14:33

Liberum;
C-share issue - rationale

Given full deployment of existing capital on track for January, P2PGI is considering a possible C-share issue in 1Q15 subject to investor demand with the size yet to be determined. We see the following benefits for existing shareholders:

1) Strategic benefits of scale: as the largest permanent pool of investment capital, P2PGI will be able to continue to attract platforms and negotiate favourable terms with them.

2) Lower cost debt financing: scalability will allow access to cheaper debt funding as banks are able to spread their fixed costs of serving P2PGI over a larger transaction amount. Eaglewood anticipates potential fund financing rate reductions of up to 50-100bps due to improved scale. In addition, increased scale facilitates securitisations in due course – typically the lowest cost form of fund financing.



3) Cost efficiencies of scale: currently the annual operating cost of running the P2PGI fund is c40bps of P2PGI’s NAV, we estimate this could shrink with increased size towards c20bps.

4) Better entry points on equity investments: With larger scale, P2PGI will be able to negotiate better entry points on equity investments.


Equity Investment;

£0.5m of new equity investment

P2PGI has made a new investment of £0.5m in a P2P platform. To date the Company has made 4 equity investments which make up 1.3% of deployed capital.

For reference, under P2PGI's mandate, up to 5% of AuM can be deployed as equity investment.

Financials

[oniabsta] 11/12/2014 08:42

FT article on Lending club $5.4bn IPO

What Mr Laplanche does with the proceeds is the topic of much debate within the industry; many speculate its next stage is an international acquisition that will propel it into a global force of peer-to-peer lending.

Marketplace industry participants including competing platforms and investors who buy their loans have welcomed Lending Club’s IPO as a debut for the entire sector.
“It’s great exposure. It gets the word out,” said Joshua Rand, who invests in P2P loans on behalf of Petra Partners LLC.


P2P possible trgt?

[jaws6] 18/11/2014 11:06

dave
tks.let's hope for more upgrades

[davebowler] 18/11/2014 10:25

Investec;
Alternative Credit

P2P Global Investments (P2P) LN Dividend

¢ The company has declared a first interim dividend of 6pps..

The Company expects to announce the next monthly newsletter for October 2014 on 25 November 2014

[oniabsta] 17/11/2014 14:51

Must be close to announcing the maiden divi they stated would be paid in november

[davebowler] 30/10/2014 11:20

F. F. -I do sympathise but the margin the Banks operate on is vastly higher with a difference between deposit rates and loans of 6% plus.

[future financier] 29/10/2014 09:55

So - a little of the froth has come off. Until they admit to what they are ripping out of the fund into their own managed funds - and how much is being paid for the privilege of so doing - this will remain a dubious investment unless it is at a significant discount to NAV.

[davebowler] 29/10/2014 09:27

Liberum's Banks & Other Financials Team published a short note this morning following the publication of September's monthly report.

Deployment in September more than doubled to £24m, due in part to seasonality but also due to broadening relationships with existing P2P platforms. At the end of September cumulative deployment was £91m, 46% of NAV. Management remains comfortable with the rate of deployment and the outlook for yields. Geographically, Europe is gaining ground, now accounting for 31% of deployed assets. We leave our financial forecasts unchanged. P2PGI trades on a p/NAV of 1.05x yielding 8.6% in 2015e. We continue to expect the shares to re-rate as cumulative deployment increases and the low risk nature of the fund's assets becomes evident. Re-iterate BUY with TP 1400p.

[davebowler] 23/10/2014 09:22

Investec;
Mohamed El-Erian joins peer-to-peer lender Payoff

¢ Mohamed El-Erian, the former Pimco chief executive, is moving into the peer-to-peer industry after agreeing to take an equity stake in a new lender, his first corporate venture since departing the world’s biggest bond manager earlier this year.

¢ Mr El-Erian is the lead investor in a $12m equity raising for Payoff, as well as the anchor investor in the new venture’s lending vehicle.

¢ The sector is dominated by Lending Club and Prosper, but Mr El-Erian’s investment in the new peer-to-peer group – known as Payoff – could provide a fillip for the fast-growing “P2P” industry.

¢ P2P lenders, also known as direct or marketplace lenders, say they can use new technology to make online loans more efficiently than traditional banks that are saddled with new regulation and outdated IT systems.

¢ Mr El-Erian joins other high-profile names who have entered the sector, including John Mack, the former Morgan Stanley chief executive, and Lawrence Summers, the former US Treasury secretary, both of whom sit on Lending Club’s board.

¢ Scott Saunders, Payoff’s founder and chief executive, said it was seeking to help borrowers refinance their debt at lower rates than big banks and credit card companies.

¢ In a twist to the business models of Lending Club and Prosper, Payoff plans to use behavioural science to augment its business as well as technology that incorporates new troves of online data into its loan underwriting process.

¢ Full Article Here

[davebowler] 29/9/2014 09:47

Liberum's Banks & Other Financials Team published a short note on Friday following the publication of August's monthly report.

As might be expected, P2PGI experienced some seasonal slowdown in August, with net deployment of £10m for total cumulative deployment of £67m, 34% of NAV. Management remains comfortable with the rate of deployment and the outlook for yields. Geographically, Europe is gaining ground, now accounting for 23% of deployed assets. Post summer we expect the pace of deployment to accelerate significantly in September. We leave our financial forecasts unchanged. P2PGI trades on a p/NAV of 1.09x, yielding 8.3% in 2015. We continue to expect the shares to re-rate as cumulative deployment increases and the low risk nature of the fund's assets becomes evident. Re-iterate BUY TP 1400p.

[davebowler] 26/9/2014 15:34

Useful link hxxp://www.altfi.com/

[davebowler] 29/8/2014 09:48

hxxp://dealbook.nytimes.com/2014/08/27/lending-club-leader-in-peer-to-peer-plans-i-p-o/?_php=true&_type=blogs&_php=true&_type=blogs&_r=1

[oniabsta] 27/8/2014 19:47

from prospectus

The Company intends to distribute at least 85 per cent. of its
distributable income earned in each financial year by way of
dividends. The Company intends to pay its first dividend in
November 2014 in respect of the period to 30 September 2014.
Thereafter, the Company intends to pay dividends on a quarterly
basis with dividends declared in December, March, June and
September and paid in February, May, August and November in
each year. Once the proceeds of the Issue are fully invested in
Credit Assets, the Company will target an annualised dividend
yield
of at least 6 to 8 per cent. of the Issue Price per Ordinary Share.

[mozy123] 27/8/2014 16:08

Is the dividend going to be quarterly?

[scottishfield] 27/8/2014 16:03

hopefully we can climb a bit fm here.

[davebowler] 27/8/2014 14:55

Liberum
P2PGI deployed £21m in July despite summer seasonality and
looks on track to have deployed £200m by year end. Cumulative
deployment at the end of July was 29%. We continue to expect a 4Q14
dividend of 2.1%, rising to 8.4% in 2015e. The NAV increased 0.2%
in July. European deployment accelerated in July, helping to
re-balance the portfolio mix. Progress was also made on equity
investments. Further platforms are likely to be onboarded over the
next couple of months increasing deployment capacity and
diversification. P2PGI is likely to gradually re-rate in our view
as it demonstrates successful deployment and investor focus shifts
to the appropriate cost of capital.

Good deployment in July

P2PGI deployed £21m in July of which c50% was into US
consumer bringing total deployment to £57.3m, equivalent to
29% of investable cash. On a straight line basis P2PGI is on track
to have deployed c £200m by year end. While current
cumulative deployment benefited from pre-secured capacity
(undisclosed) ahead of launch, deployment is likely to further
accelerate particularly for the European platforms enabling full
deployment by year end. Management indicate that net yields
achieved to date are tracking our forecasts with the loan loss
experience better than expected.

Rebalancing towards European loans

European deployment increased 84% MoM in July resulting in Europe
as a % of total outstanding deployment increasing from 9% to 16%.
European consumer increased from 2% to 7% of total deployment. We
expect this mix to further shift towards Europe in the coming
months.

[davebowler] 26/8/2014 09:31

Following the June NAV report on 28
th
July, P2PGI have
announced their 1
st
interims (for the month of June). As
previously reported, the June
NAV
was 987p an increase of 0.2%
from their starting NAV
of 985p broadly as expected and implying
a current P/NAV of 1.08x.
The deployment is on track with £38m,
19%, of the capital deployed
-
consistent with our forecast of
c£200m deployment by end 2014e. P2PGI as the first global pool
of permanent investor
capi
tal in the P2P sector,
offers investors
the opportunity to take advantage of the generational shift in the
way individuals borrow and
lend. P2PGI raised £200m in
May
primarily to finance
P2P loans and take equity
stakes in
platforms. Of the 19% of cash dep
loyed, the majority, 12%, was
into US
consumer loans.
We forecast P2PGI
offers a low risk
yield of 8.4% in 2015e. Reiterate BUY, price
target of 1400p.
Deployment is on track: 19% of cash deployed
by end June
P2PGI have announced that to the end of
June
th
ey have
deployed £38m, 19% of the
£200m raised.
They are on track to meet our base case forecasts of full deployment by
the end of 2014e. The majority of the capital deployed has been in US consumer loans,
through the Eaglewood Income Fund I. P2PGI plans t
o ramp up its European
deployment in the coming months
purchasing loans through 3 European
platforms both
in the SME and Consumer Space.
While the deployment mix to date is more US centric
at 91% than our forecasted 40%, we expect this mix will shift to m
ore European
deployment in coming months. The actual reported P&L for June 14 is less meaningful
in our view, being the 1st month of operation: Revenues in June were £0.083m and Net
income was minus £0.17m
Portfolio Composition
Initial equity stakes secured
P2PGI has also started to purchase equity stakes
,
0.7% of assets
currently, in nascent
platforms (within it's mandate P2PGI can purchase direct equity stakes in P2P platforms
with up to 5% of its gross assets). In June they took a stake in an early stage US
consumer platform (name undisclosed). Additionally they have pu
rchased a convertible
loan note in an early stage UK trade finance platform
-
which we believe is Crossflow
based on the IPO prospectus disclosure.
Valuation
We expect P2PGI to re
-
rate as investors gradually apply a lower cost of equity which we
believe t
o be c 6.0% vs. a 2015e
RoE of 9.8%.

[davebowler] 26/8/2014 09:28

Liberum's Banks and Other Financials Team published a short note this morning on Peer to Peer Global Investments following the announcement of their first June interims.

Deployment is on track, with the majority of cash into US consumer loans to date. On 1 August, a further $20m investment in Eaglewood SPV I LP was also made. Some initial platform equity stakes have been secured, including a convertible loan note on a UK trade finance platform.

[scottishfield] 28/7/2014 16:13

V good, tks db

[davebowler] 28/7/2014 14:29

Later on in the report it states that £1.4m is already invested in Equity in P2P Platforms;
Initial Equity stakes secured

P2PGI has also started to purchase equity stakes, 0.7% of assets currently, in nascent platforms (within it's mandate P2PGI can purchase direct equity stakes in P2P platforms with up to 5% of its gross assets). In June they took a stake in an early stage US consumer platform (name undisclosed). Additionally they have purchased a convertible loan note in an early stage UK trade finance platform- which we believe is Crossflow based on the IPO prospectus disclosure.

[davebowler] 28/7/2014 14:25

Liberum;
Peer to Peer Global Investments

Off to a good start

BUY

Target price 1400p | Published price 1079p

P2PGI announced their June NAV of 987p an increase of 0.2% from their starting NAV of 985p broadly as expected and implying a current P/NAV of 1.09x. The deployment is on track with £38m, 19%, of the capital deployed- consistent with our forecasted full deployment by end 2014e. P2PGI as the first global pool of permanent investor capital in the P2P sector, offers investors the opportunity to take advantage of the generational shift in the way individuals borrow and lend. P2PGI raised £200m in May primarily to finance P2P loans and take equity stakes in platforms. They had deployed 18.6% of this capital by the end of June, the majority, 12.0%, into US consumer loans. We forecast P2PGI offers a low risk yield of 8.5% in 2015e. Reiterate BUY, price target of 1400p.

At 19% by end June, deployment is on track

P2PGI have announced that to the end of June they have deployed £38m, 19% of the £200m raised. They are on track to meet our base case forecasts of full deployment by the end of 2014e. The majority of the capital deployed has been in US consumer loans, through the Eaglewood Income Fund I. P2PGI plans to ramp up its European deployment in the coming months purchasing loans through 3 European platforms both in the SME and Consumer Space. While the deployment mix to date is more US centric at 91% than our forecasted 40%, we expect this mix will shift to more European deployment in coming months.