Ludgate  Finance    

Presenta0on  to  MGI  Conference Richard  Mason  Steve  Grice    25th  November  2016      

Ludgate P2P Track Record •  Completed 1st P2P deal in October 2011

•  c.300 P2P deals placed to date

•  Total value £100M+ Variety of platforms

•  Very experienced at raising funds

•  Specialise in working capital / trading businesses

•  Completely independent

Overview – P2P Debt Funding

• P2P lending bypasses banks – allows experienced investors to make loans directly to established businesses

• Loans from £100k up to several million depending on the deal structure

• Different platforms have different flavours

• Not a replacement for equity

• Start-ups are still difficult

P2P size and growth Overall  funds  raised  since  2010:    

£8.531  billion  Overall  funds  raised  in  2016  (so  far):  

£3.234  billion  

Averages  to  Oct  17  

Amount  raised  per  month   £323m  

Average  interest  rate   7.22%  

Bad  debts   1.2%  

Arrears   0.35%  

P2P size and growth CumulaGve  amount  raised  

2013   £193m  

2014   £749m  

2015   £2.8bn  

2016  (to  Oct)   £3.2bn  

2017  (forecast)   £4.3bn  

Market  characteris0cs

•  Sector  agnosAc  • Property  /  working  capital  tension  •  Loan  size  increasing  • New  products/structures  being  developed  •  InsAtuAonal  Funding  •  Excess  cash  needing  to  be  deployed  

Working  Capital

• OverdraP-­‐style  funding  –  draw  and  repay  at  will  

•  Suits  intermiSent  or  just-­‐in-­‐case  cashflow  needs  

•  Typical  interest  rates  9.0%  -­‐  paid  only  when  drawn  

•  Short  credit  process  

MBO/MBI/Acquisi0on  Funding

• Cashflow-­‐led  lending  

• MulAple  of  EBITDA,  does  not  need  100%  asset  backing  

• Can  be  more  forward-­‐looking  than  tradiAonal  lenders  

• Pushing  into  Corporate  Finance  market  

Typical  Deals

• Usually established, profitable businesses; the type that banks used to support

• Larger loans requires good security – but we can be flexible by balancing risk and reward

• Loan range: from £100k to several million. • Lending by human assessment

Preferred  Sectors

• Cash  flow  lends  against  good  EBITDA  

• AcquisiAons  

• MBO  /  MBI  

•  Income  stream  lending  e.g.  finance  businesses  /  IFAs  

• Property  development  /  bridging  

Ludgate  –  P2P  specialists • We  are  a  specialist  debt  advisory  firm  

•  300+  fundraisings  to  date  

• We  don’t  do  anything  else.  Been  in  industry  from  incepAon  

• High  success  rate  

• Cover  the  whole  of  UK  

• Direct  access  to  insAtuAonal  /  private  funds