BondMason’s latest investment fundraising round raised GBP1.85 million, to drive the growth of the business and fulfil the company’s vision to enable more investors to access returns from direct lending.
The direct lending market in the UK is continuing to come of age, offering investors the potential to deliver attractive risk-adjusted returns with lower volatility compared to equity capital markets. This was marked by another record year of growth for direct lending in 2017.
Recognising this, the team at BondMason took the decision to raise another round of investment funding to fuel the continued expansion of the business.
Stephen Findlay, CEO of BondMason, says: “We’ve received significant interest from both new and existing shareholders for this fundraising, which represents a strong endorsement of our business strategy. The round was oversubscribed by 50 per cent.
“We’re delighted to announce that Seneca Partners and Par Equity led the investment round – two of the UK’s leading EIS investment managers. We’re also excited to have a number of private investors participating in the round as well. This is a key milestone for the business and marks the next chapter in our journey.
“The growth of BondMason has trebled over the last 12 months – with a strong focus on client service, we look forward to taking this momentum forward. We will expand our product offering to enable clients to achieve a broader selection of attractive risk-adjusted returns, during these low interest times”.
Since 2015, the team at BondMason has enabled a total investment of GBP35 million across 6,000 curated lending opportunities, consistently resulting in average gross returns of 8 per cent pa resulting in clients receiving in excess of GBP1 million of interest payments to date.
The funding round will enable BondMason to improve the service further, through the launch of new products, including a suite of Fixed Term Bonds and an IF ISA later in the year. There will also be an enhanced user experience of the platform, improved client dashboard functionality, and development of the SIPP and SSAS Service alongside both current and new partners.
Since 2015, BondMason has invested heavily in building its investment team and processes, as well as building a market-leading technology and operations platform. BondMason will continue its investment in these areas, and will start to expand its Growth Strategy, with the aim to reach a wider audience of investors through various marketing, sales and distribution channels.
Findlay says: “The vision is to bring the BondMason proposition to life by developing our brand awareness and client engagement, and by ultimately raising our profile and share of voice in both the direct lending market and wider investment arena. Our role is to enable more investors to access direct lending as a complimentary asset class, enhancing their overall investment strategy.
“We will work closely with other participants in the financial services sector, such as IFAs and Wealth Managers, as well as continue to serve clients directly. “
Leading the investment round is Seneca Partners, a leading UK investor specialising in the provision of capital to small and medium sized companies.
John Davies, Investment Director, says: “At Seneca, we invest in growth opportunities where we are able to deliver returns for our investors. BondMason is a great example of the types of businesses we like to work with. Stephen Findlay and the team have established an exceptional, soundly managed business and we’re excited about the prospect of helping the company to achieve their growth potential.”
Those sentiments are backed by Par Equity, which has supported BondMason since it was established in 2015.
Marcus Henderson, Investment Manager, says: “From the start we recognised the high growth potential of BondMason. Our primary interest is in companies that are innovative and do things in new and better ways, and so gain competitive advantage. That is BondMason to a tee. The first-class management team, led by extensive investment expertise, combined with technical innovation, and a fresh approach, is exactly what we look for when we consider investing in a company.”
Findlay says: “We owe a big thank you to every member of our community, clients, partners, and especially our team, who all believe in our mission. They are all, in some way, helping clients to get a great return on their money, enabling BondMason to become the UK’s go-to direct lending service for both investors and their advisors. Our passion and commitment has driven our success so far and we’re excited about continuing to deliver a great service to clients, and to take the business to the next level.”