The London Stock Exchange (LSE) organized an investment fund conference in late March, with alternative finance playing an important role at the event. Funds and wealth management business has especially need to find more uncorrelated assets in their operations.
Renewables, asset leasing and p2p loans are becoming more important for investments funds, with some funds that have already started cooperation with p2p lending services around the world. For example, P2P Global Investments is a trust that invests in lending platforms and also helps in guaranteeing much needed liquidity in platforms and marketplaces.
A question in the conference was, to discuss best models for investing in lending and other alternative finance platforms. One conclusion of a panel discussion on the topic was that ‘open-ended’ models don’t work properly with p2p loans. They also concluded that the US BCD (Business Development Company, similarities to VC funds) is a very problematic structure to use for p2p loans.
A larger mix of investors is still needed for the peer to peer market. It might require some new instrument models to get new investors (eg. private banks) to properly leverage and take advantage of this market. At the same time, more and more senior talent from the traditional finance companies are moving to p2p lending and instrument companies. One can argue that this means increased activities in that space.
Panelists were also asked, what are their favorite instruments to invest into in 2016. They listed some requirements and candidates for those instruments, for example, 1) they must be scalable and easy to understand, 2) new real estate based instruments, and 3) PRS (Private Rented Sector) investment instruments. They also believed the online and p2p lending sector has a huge opportunity now.
As the Alternative Finance market needs to create new investment structures, through our work at Crowd Valley we help our customers develop new finance concepts and models, using a strong base of modern technology delivery mechanism. The markets development is still at a nascent stage, with significant growth to be expected for several years ahead as the market gains validity and volume. What the market needs is sophisticated participants with a long term view and commitment to developing these new models, pioneering new opportunities and setting benchmarks in the market.
As the Alternative Finance market needs to create new investment structures, through our work at Crowd Valley we help our customers develop new finance concepts and models, using a strong base of modern technology delivery mechanism. The markets development is still at a nascent stage, with significant growth to be expected for several years ahead as the market gains validity and volume. What the market needs is sophisticated participants with a long term view and commitment to developing these new models, pioneering new opportunities and setting benchmarks in the market.
About the author - Jouko Ahvenainen
Jouko Ahvenainen is a serial-entrepreneur, Crowd Valley's Chairman and Co-founder of the Grow VC Group, a pioneer in new funding solutions, including equity p2p investments. He participated in changing US finance regulation, getting the Senate and President to allow crowdfunding and has worked with EU finance regulation. Jouko started his work with crowdfunding models in 2008. Jouko is a founder, partner and board member in several innovative digital finance companies, like Crowdbaron, Kapipal, Grow Advisors and Commoditarian. Jouko is also a member in the Transatlantic Economic Forum SME Access to finance group, and has been an advisor for US, European and Asian finance programs.
Jouko Ahvenainen is a serial-entrepreneur, Crowd Valley's Chairman and Co-founder of the Grow VC Group, a pioneer in new funding solutions, including equity p2p investments. He participated in changing US finance regulation, getting the Senate and President to allow crowdfunding and has worked with EU finance regulation. Jouko started his work with crowdfunding models in 2008. Jouko is a founder, partner and board member in several innovative digital finance companies, like Crowdbaron, Kapipal, Grow Advisors and Commoditarian. Jouko is also a member in the Transatlantic Economic Forum SME Access to finance group, and has been an advisor for US, European and Asian finance programs.
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