Funding Circle's shares dived today as it revealed plans to wind down its small and medium enterprises fund and return capital to shareholders.
Funding Circle SME Income Fund (FCIF) saidthat after a consultation with shareholders accounting for over two thirds of the register, it had concluded investors did not want to put more money into new credit assets.
Read more: Funding Circle shares rise despite widening losses on IPO costs
Instead it will convene a shareholder meeting to consider the winding down of the company.
This would involve the companys portfolio being realised and not reinvested.
Funding Circle's shares sank nine per cent to 312p – a far cry beneath its October float price of 440p.
FCIF listed on the stock market in 2015 with the goal of allowing public market investors to invest in a portfolio of Funding Circles small business loans.
Funding Circle said it had significantly broadened its mix of funding sources since 2015, and as a result, FCIF has become a declining part of its funding mix.
Read more: Funding Circle beats revenue growth forecasts three months on from IPO
Samir Desai, Funding Circle chief executive, said: "A global income fund providing access to a diversified portfolio of Funding Circle small business loans was the right strategy for investRead More
