by: Grow VC Group
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The London Stock Exchange (LSE) organized an investment fund conference in late March, with alternative finance playing an important role at the event. Funds and wealth management business has especially need to find more uncorrelated assets in their operations.

A question in the conference was, to discuss best models for investing in lending and other alternative finance platforms. One conclusion of a panel discussion on the topic was that ‘open-ended’ models don’t work properly with p2p loans. They also concluded that the US BCD (Business Development Company, similarities to VC funds) is a very problematic structure to use for p2p loans.

A larger mix of investors is still needed for the peer to peer market. It might require some new instrument models to get new investors (eg. private banks) to properly leverage and take advantage of this market. At the same time, more and more senior talent from the traditional finance companies are moving to p2p lending and instrument companies. One can argue that this means increased activities in that space.

Panelists were also asked, what are their favorite instruments to invest into in 2016. They listed some requirements and candidates for those instruments, for example, 1) they must be scalable and easy to understand, 2) new real estate based instruments, and 3) PRS (Private Rented Sector) investment instruments. They also believed the online and p2p lending sector has a huge opportunity now.

The markets development is still at a nascent stage, with significant growth to be expected for several years ahead as the market gains validity and volume. What the market needs is sophisticated participants with a long term view and commitment to developing these new models, pioneering new opportunities and setting benchmarks in the market.

Read the whole article on Crowd Valley Blog.

LSE fund investment panel


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Grow VC Group The Grow VC Group is the world leading, global pioneer of securities crowd funding, peer to peer marketplaces, new investment models and global business development. Established in 2009, the Group has developed new investment models on six continents and continues to innovate the global market.

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