Alternative Investment  

Woodford and Artemis back peer-to-peer lender  

Woodford and Artemis back peer-to-peer lender  

RateSetter has raised £13m in its latest fundraise, after high-profile fund managers such as Neil Woodford pumped capital into the peer-to-peer provider.

The latest round of fundraising means RateSetter, which is one of the biggest peer-to-peer lenders in the UK, is now valued at £200m.

A number of well-known asset management firms, including Artemis and Woodford Investment Management, have contributed to the latest fund raise, as well as existing shareholders.

Rhydian Lewis, chief executive of RateSetter, said: “It is important to keep up the momentum of investing in our platform.”

He said the further injection of capital lays the ground for an “important new phase” of development for the business.

“There has never been more confidence in RateSetter’s future,” Mr Lewis said, pointing out that the firm has so far delivered more than £70m in interest to lenders.

The £13m in equity will be used to scale-up the business ahead of the launch of its Innovative Finance Isa.

The firm is still on the waiting list to receive full authorisation from the Financial Conduct Authority; only then can it apply for Isa manager status with HM Revenue & Customs.

Since its launch in 2010, RateSetter had raised more than £40m in equity.

The firm also announced that Paul Manduca, who chairs the board at FTSE 100 giant Prudential, will join RateSetter as chairman in July.