Financial services company raises £305m to launch platform for over 55s
A London financial services company has announced that it has raised more than £300m to fund customer loans.
Free2, a new financial services brand for the over 55s market, has reported the completion of a fundraising round with NatWest Markets and a European special situations fund.
NatWest Markets has provided a £200m securitisation facility to assist Free2 in funding new customer loans, with junior debt funding of £105m being provided by the European special situations fund.
The funding will be used to support the launch of Free2’s first product at the beginning of June.
Jamie Robinson, chief capital officer at Free2, commented: “It is largely unprecedented for a start-up to sign such significant credit facilities with institutional partners.
“That we’ve been able to do so is a powerful endorsement of our business proposition and the brand that Free2 plans to develop.”
Commenting on the announcement, Paul Lindsay, Founder & CEO of Free2, said: “Free2 was built out of a recognition that financial services have not kept pace with the changing demands of modern retirement.
“As a result, a large segment of the market does not have access to financial products that are appropriate for their goals and objectives once they reach 55.
“Our mission is to change that. By catering specifically for these customers, we’re seeking to create products that promote freedom and choice and that provide opportunity rather than limitations for those assessing what they want to achieve in retirement.
“We call it financial freethinking, and today’s announcement is an important milestone as we begin that journey.
“Customers want choice, but they also want security and peace of mind. That’s why we’ve built our business with responsibility at its core.
“We’re setting a new standard in customer protection that we hope will prompt others to follow suit.
“It’s now more important than ever to ensure customers are empowered through clear information and guidance on the suitability of financial products.”
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