The research amongst European institutional investors revealed that 74% of investors felt growth in alternative non-bank finance could increase the resilience of the financial system by decreasing the burden on banks, with 64% believing SMEs relied too much on traditional bank finance.
The study also highlighted that almost three quarters of investors expect there will be a growing institutional appetite for investing in the alternative finance market over the next two years, where it is predicted the alternative lending sector will grow by just under a quarter (23%), due to demand driven by expanding SMEs.
John Jenkins, CEO of Amicus, said as the economy continues to recover, institutional investors have seen a strong opportunity for the capital markets to play a bigger role in financing SMEs.
“Institutions increasingly recognise they can generate attractive returns through investing in alternative finance without taking on large risks,” said John.
“We are seeing a high level of interest from investors looking for exposure to our short term bridging loans secured against UK residential and commercial property.”
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