In an emergent trend observed across the specialty finance and marketplace lending sector, there has been a continual availability of growth capital specifically directed towards specialized lenders. More precise, Small and Medium Enterprises (SME) lenders seem to be of high interest, attracting the most capital during the past year.
Another significant development in the sector is the increasing participation of venture capital (VC) in debt investments. VC entities such as Quilam Capital and Fasanara Capital have been noted to spearhead this shift. Their respective ventures into Merchant Money and Novicap highlight a growing interest in this investment modality.
With the increasing encroachment of VCs into the debt space, the finance sector is bracing for a landscape shift where established financial methodologies and practices might undergo significant transformation
This trend report offers more comprehensive insight into changes currently influencing the specialty finance and marketplace lending sector and the potential implications to the broader field of finance.
The study was conducted by the international law firm White & Case LLP, whose capital markets expertise makes them uniquely positioned to observe and comment on such sectoral trends. Their research and insights make it clear that finance professionals need to strategically adapt to these transformative trends to stay competitive.