The agreement is the second major transaction made by Castle Trust in the alternative finance space this year after it acquired Omni Capital Retail Finance.

Castle Trust is the second large institutional investor Lendable has partnered with this year following a £100m investment in March by Waterfall Asset Management.

The lending platform has developed proprietary underwriting technology which enables instant decisions and competitive pricing on small consumer loans.

Sean Oldfield, founder and CEO of Castle Trust, said he was excited to partner with Lendable as it grew its footprint in the UK consumer lending space.

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“Following an extensive review of the market, we concluded that Lendable’s focus on machine learning and innovative distribution channels was consistent with the approach taken on our own originations to generate maximum value for customers and capital providers.

“We continue to seek further investments in the rapidly evolving alternative finance market.”

Martin Kissinger, founder and CEO of Lendable, added: “I’m pleased that another large institution is coming onboard at Lendable and joining our marketplace of institutional and private investors.

“Our loans have consistently delivered market-leading, risk-adjusted returns, and Castle Trust’s engagement allows us to further grow our lending portfolio in 2018 and beyond.”