Goldman Sachs made its latest investment in a peer-to-peer lending platform last month, continuing a long history of supporting the industry.
The banking giant’s asset management arm has entered into a line of finance with Initiative Ireland, which the P2P company says will increase its lending capacity to € 900m (£ 776.6m) over the years. next three years.
This is just the latest foray the so-called vampire squid has made into the P2P market.
In 2019, it invested in London-based P2P platform Lendable and Swedish P2P lender Brocc. The Lendable deal was worth £ 200million, while Brocc’s investment was for an undisclosed amount. Both investments were made through its division Goldman Sachs Private Capital.
And earlier this year, Goldman Sachs was one of the investors who raised $ 170million (£ 124million) in growth funding for French P2P platform Younited Credit.
Goldman Sachs has also lent its backing to the broader alternative lending space, having invested £ 50million in challenger Starling Bank earlier this year.
The US-based company has yet to invest in UK P2P lending platforms – at least publicly – but its recent forays into the Irish P2P market and the UK alternative lending market suggest it is monitoring the area up close.
Goldman Sachs has traditionally been known for wealth management and investment banking, but has entered the retail market in recent years, with the launch of the online consumer lending platform Marcus.
The objective was to diversify its sources of income by attracting retail depositors and borrowers, unlike its typical clientele of institutions and high net worth individuals.
His efforts seem to be working – a report released earlier this month by Autonomous Research valued Marcus between $ 7 billion and $ 11 billion.