Peer to peer lender ThinCats aiming to move up a gear under new ownership

TAMWORTH-based peer to peer (P2P) lender ThinCats has been acquired by a new market entrant for an undisclosed sum.

London-based ESF Capital – described as Europe’s first P2P institutional accelerator – has acquired a 73.4% stake in ThinCats from its existing owners.

ESF is also providing working capital investment together with underwriting capital for loans.
 
ESF invests in, and underwrites the loans on, European P2P platforms, and brings operational expertise to accelerate the growth of such platforms.

It is backed by UK and US institutions and is the initiative of European specialist investment company ESO Capital.

ThinCats – which has lent more than £140m to SMEs since its foundation five years ago – and ESF have been working together for a number of months and say they have a detailed plan to accelerate ThinCats’ market presence.
 
But ThinCats’ focus on experienced private investor funding of UK businesses will remain a cornerstone of the on-going business.
 
ESF’s CEO John Mould has taken on the role of CEO of ThinCats with overall responsibility for driving the business’ growth strategy.

ThinCats founder Kevin Caley remains in the business as chairman with responsibility for innovation and Peter Brown retains his post as finance director.
 
The investment from ESF will allow ThinCats to carry out planned platform improvements and develop new products to help expand its footprint in the UK.

Caley said: “Over the past five years, ThinCats has become highly valued by a network of hundreds of experienced DIY investors who bring a unique ‘crowd due diligence’ to the platform in return for market-leading interest rates.

“This investment by ESF is the fuel we need to take the ThinCats platform up a gear, to retain and extend this core lender base and to attract a broader range of investors. It’s a big step forward for the platform, and will allow ThinCats to cement its place as one of the UK’s big four peer to peer providers.”
 
Mould said: “ThinCats sits on unique foundations. It has the largest average loan size in the sector, and has been first to market with a number of innovative financial products.

“The injection of capital and expertise we are bringing to the platform from ESF will focus on strengthening these foundations, pushing loan sizes higher, and developing both products and platform to attract a wide range of investors.”