New LendDirect Platform Launched

The world of FinTech continues to evolve at a breathless pace, with crowd-funding platforms at the forefront. Few new platforms can claim to be as innovative as the recently launched LendDirect platform. LendDirect offers investors the opportunity to invest in a portfolio of bridge loans, secured by charges on UK residential and commercial property.

Most crowd-funding platforms either facilitate single purpose investment (perhaps an investment in one asset or project), or a one-size offering of a prescribed class of pooled assets. In contrast, the LendDirect platform enables each investor to invest in a portfolio of secured loan assets with a bespoke profile, created from the existing and future platform loan book. A sophisticated algorithm enables the platform to spread each investor’s risk in accordance with a number of investor-specified risk parameters (such as property type, geographical spread, loan to value ratios, percentage of loan held, or mortgage ranking). To achieve this unusual flexibility, the platform operates a dynamic and highly fluid securitisation system.

Whilst dynamic securitisation structures are not new to the financial services or legal industries, the use of such structures in the context of a crowd-funding platform for non-institutional investors is certainly novel. Colin Winter’s corporate team at IWG led the process of developing the legal frame-work and documentation for this unusual platform, in close partnership with LendDirect. The legal structures and documentation devised for LendDirect are designed to be accessible to non-institutional investors, whilst performing a highly sophisticated set of functions typical of more esoteric and institutional finance structures.

IWG has extensive expertise in crowd-funding and FinTech projects, and has helped many clients establish pooled funding structures. We would be delighted to discuss how we may help you raise finance through crowd-funding or similar innovative schemes.

For further information please contact:

Colin Winter
Partner, Corporate