Alternative Lending News
July 11, 2017

Top Stories
Atalaya Capital Management, a private credit and special opportunities alternative investment manager, announced today that the firm has entered into a primary transaction with Dyal Capital Partners, a division of Neuberger Berman Group. Dyal will become a passive, non-voting minority partner in Atalaya. All of the proceeds from the investment will be retained on Atalaya's balance sheet to expand the Firm's capabilities and increase the Firm's investment alongside its investors.

In spite of ongoing challenges, the marketplace lending industry continues to scale. Perhaps as a testament to the industry's success, incumbent banks such as Goldman Sachs have begun to encroach on fintech's turf. The bank's Marcus platform has offered personal loans to consumers since October 2016. Meanwhile, regulatory uncertainty has only increased with recent rulings providing no clear framework.

Financial technology has been all the rage these days, and there's no shortage of fintech startups popping up across the globe. However, investments have been slowing down, indicating that the industry is reaching saturation for certain verticals. As such, startups should expect stiff competition.

New lending figures will raise concerns over consumer borrowing, as the Finance and Leasing Association (FLA) show consumer finance growing at 8% year-on-year. Credit card and personal loan new business grew by 11% compared with May 2016, while retail store and online credit new business increased by 3%. Second charge mortgage new business grew 26%, partially caused by changes in the mortgage rules.  

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