Ludgate Finance
Presenta0on to MGI Conference Richard Mason Steve Grice 25th November 2016
Ludgate P2P Track Record • Completed 1st P2P deal in October 2011
• c.300 P2P deals placed to date
• Total value £100M+ Variety of platforms
• Very experienced at raising funds
• Specialise in working capital / trading businesses
• Completely independent
Overview – P2P Debt Funding
• P2P lending bypasses banks – allows experienced investors to make loans directly to established businesses
• Loans from £100k up to several million depending on the deal structure
• Different platforms have different flavours
• Not a replacement for equity
• Start-ups are still difficult
P2P size and growth Overall funds raised since 2010:
£8.531 billion Overall funds raised in 2016 (so far):
£3.234 billion
Averages to Oct 17
Amount raised per month £323m
Average interest rate 7.22%
Bad debts 1.2%
Arrears 0.35%
P2P size and growth CumulaGve amount raised
2013 £193m
2014 £749m
2015 £2.8bn
2016 (to Oct) £3.2bn
2017 (forecast) £4.3bn
Market characteris0cs
• Sector agnosAc • Property / working capital tension • Loan size increasing • New products/structures being developed • InsAtuAonal Funding • Excess cash needing to be deployed
Working Capital
• OverdraP-‐style funding – draw and repay at will
• Suits intermiSent or just-‐in-‐case cashflow needs
• Typical interest rates 9.0% -‐ paid only when drawn
• Short credit process
MBO/MBI/Acquisi0on Funding
• Cashflow-‐led lending
• MulAple of EBITDA, does not need 100% asset backing
• Can be more forward-‐looking than tradiAonal lenders
• Pushing into Corporate Finance market
Typical Deals
• Usually established, profitable businesses; the type that banks used to support
• Larger loans requires good security – but we can be flexible by balancing risk and reward
• Loan range: from £100k to several million. • Lending by human assessment
Preferred Sectors
• Cash flow lends against good EBITDA
• AcquisiAons
• MBO / MBI
• Income stream lending e.g. finance businesses / IFAs
• Property development / bridging
Ludgate – P2P specialists • We are a specialist debt advisory firm
• 300+ fundraisings to date
• We don’t do anything else. Been in industry from incepAon
• High success rate
• Cover the whole of UK
• Direct access to insAtuAonal / private funds