Peer to peer lender appoints administrators

Frank Ofonagoro

Altrincham-based peer to peer lender, The House Crowd, appointed Frank Ofonagoro, Jeremy Woodside and Frank Wessely, at business advisory firm Quantuma, as joint administrators, with consent from the FCA (Financial Conduct Authority) on February 24.

The administration is not expected to have a material impact on investors/lenders.

The joint administrators will continue the orderly wind down of the loan portfolio and the return of monies to lenders.

It is not yet clear how many of the firm’s eight employees and five consultants will be affected by the administration, as well as the 15 developments being funded through the platform.

Founded in 2012, The House Crowd is a peer to peer lending platform, offering SME bridging loans secured against land or property.

Investors are offered a range of products including Innovative Finance ISAs (IFISA), a 30-day ‘Fusion’ account and SIPP investments.

The firm has approximately 3,700 active investors on the platform and has, to date, funded more than 400 developments worth £123.9m.

On February 25, Quantuma joint administrators were also appointed over House Crowd Property Management Limited, House Crowd Finance Limited, House Crowd Finance (Security Agent) Limited.

Frank Ofonagoro, Quantuma director, said: “Due to ongoing financial issues facing the company, the directors resolved that it would be in the best interests of The House Crowd and its creditors and its loan investors, to appoint administrators.

“Our priority will now be on securing the best possible outcome for all parties.”

He added: “Wherever possible, that includes the repatriation of client monies, completion of existing development builds, orderly wind down of loan books, and, ultimately, protecting the interest of investors and creditors.

“We would urge all parties affected by this news, in the first instance, to visit the House Crowd website, where we have posted a series of FAQs.”

Following Quantuma’s appoinment, David Currie and Andrea Shackleton have been appointed LPA Receivers over The Downs Quarter Altrincham, which is a residential development of 39 apartments and four town houses in central Altrincham, which, they say, represents an excellent investment opportunity for property investors and owners alike.

David Currie has offices in Liverpool and Manchester.