Lendy, a European peer-to-peer secured property lending platforms, has launched two new accounts under the ‘Lendy Wealth’ brand.
The new products provide high-yielding property-backed loan investments for high net worth investors, without the time commitment of managing individual P2P loans.
The new products are: Lendy Wealth365, offering returns of up to 10 per cent from an account with a 365-day withdrawal notice period; and Lendy Wealth60, offering returns of up to 6 per cent from an account with a 60-day withdrawal notice period. The Lendy Wealth products allow for a more rapid diversification across loans than they could achieve through investing in individual P2P loans, allowing investors to avoid the time consuming process of selecting individual loan parts.
Diversification across loans is seen as an essential step in risk management in P2P loans as it is in other asset classes. Investments on behalf of Lendy Wealth accounts will be managed by Lendy’s investment committee, which meets daily to decide which projects are invested in.
Lendy’s investment committee comprises:
• Alan Darling, Head of Lending, who has over thirty years of experience in the banking sector in Credit, Internal Audit and security roles. Alan spent six years at Santander’s UK Corporate Banking division before joining Lendy, where he was the Relationship Director of Real Estate. He has also worked for Lloyds Banking Group, Bank of Scotland, and Barclays in senior positions.
• Andrew Wawrzyniak, Head of Finance. Prior to joining Lendy, Andrew was Head of Finance at Fund Partners, which specialises in the operation of collective investment schemes. His clients included Octopus Investments, Pictet Asset Management and Russell Investments.
• Mark Whitburn, Head of Credit. Mark has over 35 years’ experience in the banking industry, where he was most recently at HSBC Bank. Before joining Lendy, Mark spent the previous eight years as a specialist in Real Estate finance, following a number of roles including Group Audit Manager and Branch Manager.
Initially, no more than 20 per cent of an investor’s funds will be invested in any single loan. Lendy’s aim is to have no more than 5 per cent of a single investor’s portfolio in any one loan to minimise risk as much as possible.
Both Lendy Wealth accounts will also have a dedicated account manager. The accounts offer the following:
• Investors’ money is invested in a diversified and managed property investment portfolio, in accordance with Lendy’s standard lending criteria
• The account provides access to an investor’s capital with 365 days’ notice for Lendy Wealth365 and 60 days’ notice for Lendy Wealth60
• A minimum deposit amount of GBP10,000.
Robert Kelly, COO of Lendy, says: “We have a great opportunitiy to respond to investor demand for new Lendy investment products. We know that there are lots of potential investors who are asset-rich but time-poor and don’t have the time to self-select their investments. Our new products can help to solve that problem – delivering rapid diversification that will increase over time. As the P2P sector – and Lendy – continue to expand rapidly, we are delighted to be offering industry-topping rates.”