Friday, 21 October 2016
Last updated 1 hour ago
Apr 28 2014 | 2:55pm ET
Marshall Wace Asset Management is ramping up its months-old peer-to-peer lending presence.
The London-based hedge fund has agreed to buy a majority stake in Eaglewood Capital Management, which invests in peer-to-peer platforms and securitizes P2P loans. Marshall Wace has agreed to buy a 90% stake in New York-based Eaglewood, which it will merge with its own P2P business, which will be renamed Eaglewood Europe.
That business, which is still seeking approval from the U.K. Financial Conduct Authority, will then merge with Eaglewood Capital, which has US$213 million in assets, to form MW Eaglewood, which will continue to be led by Eaglewood founder Jonathan Barlow. Barlow, a former Lehman Brothers trader, will be assisted by Simon Champ as CEO of Eaglewood Europe and Steven Lee as chief investment officer.
Terms of the deal were not disclosed.
“Peer-to-peer lending has the potential to transform consumer and small and medium enterprise lending practices worldwide by disintermediating the banks,” Marshall Wace co-founder Ian Wace said. “Once Eaglewood Europe is fully up and running with its own regulatory approval, our plan is for it to be managed by its own team independently from Marshall Wace’s existing business.”
MW Eaglewood plans to list a P2P investment trust on the London Stock Exchange.