RateSetter's response to a recent media article
Sky News has published an online article about RateSetter this evening and we thought it would be helpful to issue some statements.
The article says that RateSetter is working on a sale, merger or fund raise. Like all businesses, we always keep all options under review. We have existing, developed plans to raise funds in 2020, which are advancing. We do expect consolidation in our sector, with RateSetter potentially being a consolidator rather than potentially being acquired.
With regards to a future stock market listing, RateSetter recognises that a stock market listing is not possible in the current environment. As a leading retail investment brand, it remains our long-term objective for RateSetter to become a public business, allowing people to invest in the company as well as our products.
The article says that P2P lenders are being challenged by loan defaults. The performance of RateSetter’s portfolio has been stable, as can be seen from our published statistics, and our expert credit risk and borrower services teams actively monitor and make adjustments every day. In the current climate, we will give support to our borrowers. Our Provision Fund is managed with a buffer to be a shock-absorber for external events and our focus remains on investor protection.
With regards to investment release requests, following the outbreak of the coronavirus in the UK, we saw an increase in the week commencing Monday 9 March, fluctuating as external news developed. Requests peaked on Monday 16 March and have subsequently reduced to normal levels. The vast majority of RateSetter investors continue to invest and we continue to deliver liquidity every day.
In terms of access to the Bank of England’s stimulus schemes, RateSetter believes the non-bank lending sector, including regulated P2P lending, has much to offer with regards to lending efficiently into the economy.
We hope this helps to clarify the position regarding the themes raised in the article.