Damon Walford, chief development officer, ThinCats

UK-based alternative finance provider, ThinCats has unveiled a new funding programme for £200 million with British firm, BAE Systems Pensions.

BAE Systems Pensions, with one of the largest pension schemes in the UK, aims to provide commercial loans to UK SMEs with the new financial agreement.

David Adam, chief information officer, BAE Systems Pensions, “Our partnership with ThinCats enables us to invest on behalf of our members in an asset class that offers a highly attractive risk-return profile while also making a contribution to UK SMEs, by providing much needed funding to medium sized SMEs as key participants in the UK economy.”

ThinCats focuses on offering secured loans ranging from £100,000 to £15 million for up to five years to companies with asset backing or reliable cashflows for working capital, acquisition, refinance or growth.

With the recent funding arrangement in September this year from global asset manager, Insight Investment, BAE Systems’ investment has allowed ThinCats to have a capital of £800 million for the funding of UK SMEs.

“This additional funding programme with BAE Systems Pensions demonstrates our continued ability to link institutional investor capital to growing UK SMEs,” said Damon Walford, chief development officer, ThinCats. “Our concerted regional focus and diversified funding sources has driven a significant increase in lending volumes– ThinCats will achieve a record level of funding in 2018.”

Ravi Anand, managing director, ThinCats: “We are delighted to enter a new phase of our partnership with BAE Systems Pensions. Their historic equity support for our business, combined with this new loan funding commitment, ensures ThinCats can continue to support SMEs through the challenges of the ever-changing economic outlook in the UK.”

The UK peer-to-peer lending market has shown significant development. More recently, Waterfall Asset Management made an investment of £1bn in Funding Circle’s UK platform for the growth of UK small businesses.

by Sumit Vengurlekar