Victory Park Capital is investing up to £150 million (U.S. $227 million) in loans originated by Assetz Capital, a peer-to-peer lending service.
Assetz Capital, headquartered in Stockport, England, provides loans to small and medium-sized companies in the U.K. The company is one of many trying to move into the gap left behind by traditional lenders, who look less often to lend to small companies after the recession. For more, see Finance Finesse: Lenders to Small Business Draw Investors.
Chicago-based Victory Park focuses on investing in middle market companies. The firm's investments include asset lender Borro, denim business Joe's and Fast Track Legal Funding.
Other recent lending investments include Franklin Square Capital Partners' investment in NewStar Financial Inc. (Nasdaq: NEWS) in November, and Pine Brook's investment in lending group Strategic Funding Source Inc. in September.
For more on the lending environment, see Interest Rates Will Rise, But Alternative Lenders Will Rule.