Exclusive: New P2P lending fund launches targeting 5-7% return

Funds investing in lending and alternative credit assets have been a bright spot for investors in recent years.

Investors wishing to invest in banking disintermediation have a new portfolio to choose from.

The P2P Lending Fund, headed by Christian Gut, will target returns in a 5 - 7 per cent range (in USD) without leverage.

Share classes in euros and Swiss Francs are also available, with a lower target return due to hedging costs, Gut told AltFi last week.

The firm already has commitments from several investors including multi family offices, and external asset managers  based in Switzerland and Europe.

Gut said that the fund will be investing mainly in marketplace consumer loans, initially in the US and at a later stage Europe. He added that the fund will only target “established and mature platforms” but declined to mention any by name.

The fund is an open ended fund, with monthly redemptions, and currently has $22m committed, with $11.4m already subscribed and deployed. It is structured as a Luxembourg based RAIF (Reserved Alternative Investment Fund) with an AIFM (under AIFMD), giving it market access across the EU and is open to Well Informed Investors.

So will the new fund invest in the UK’s burgeoning P2P lending sector? Not yet says Gut as the fund is avoiding UK exposure at present.

“We are waiting to gain more visibility on Brexit's consequences before investing,” Gut said.