Oxford-educated trio are in line for a £70m profit as they float their £2bn web-based lender Funding Circle
- Funding Circle is hoping to raise £300m in the share listing
- The firm is among a growing band of web-based ‘peer-to-peer’ lenders
- It has lent more than £5bn to 50,000 small firms and employs around 1,000 staff
Three Oxford-educated entrepreneurs in their 30s could make almost £70million between them when their online lending business floats in a deal expected to value it at around £2billion.
Funding Circle is hoping to raise £300million in the share listing, which it plans to use to help boost its advertising.
The firm is among a growing band of web-based ‘peer-to-peer’ lenders, bringing together small and medium companies which need finance with savers who can earn returns of 4.6per cent-7.6per cent.
Funding Circle is hoping to raise £300million in the share listing, which it plans to use to help boost its advertising
Funding Circle has lent more than £5billion to 50,000 small businesses and employs around 1,000 staff, who own 10per cent of the business. The rest is held by venture capital firms.
Chief executive Samir Desai – who founded the business with James Meekings and Andrew Mullinger in 2010 – owns around 7per cent.
Meekings, the UK managing director, holds 5per cent and Mullinger, who stepped back from his day-to-day responsibilities at the company in 2016, owns around 4.5per cent.
The three 35-year-olds will each have the opportunity to sell a quarter of their stakes, which means they could cash in up to £67.9million between them.
Danish entrepreneur Anders Povlsen, the largest shareholder in online fashion giant Asos, will take 10per cent of the shares in the float, acting as its ‘cornerstone’ investor – one who acts as an anchor by taking a large stake.
Desai said there had been substantial interest and several others had offered to act as cornerstone investors.
‘We really liked that Anders is an entrepreneur,’ he said.