Assetz Capital closing Retail P2P platform

Albermarle

One of the better ( surviving ) P2P platforms is closing to new investors. They will run down the retail book of loans, and will become 100% institutionally funded.
Reason is that they are struggling to compete for retail funds, with 100% safe savings accounts now paying 4% + 
The model worked a lot better when savings rates were low, but has now become unworkable, with funds flowing slowly out of the platform.
I have had three P2P platform investments, and all three have now ended in a similar way. Still made some profits though, if nothing spectacular.

Rollinghome

They've been struggling ever since they lost the confidence of many investors due to their manoeuvres over three years ago.  Once confidence is lost, the end is usually in sight.

dunstonh

I recall a number of years ago the thread about their daft name and it was cool with the hacking kidz.

I have had three P2P platform investments, and all three have now ended in a similar way. Still made some profits though, if nothing spectacular.

It was expected that most would fail when market conditions changed and when tighter regulation started to bite.   It was a case of making hay whilst you could.

mattywallace121

Lot more profit for them to be made with institutional investors, they were already operating at only 20% retail lending. Not really worth the hassle and will benefit the company in the long run.

Won't benefit those with money loaned out with them, myself included. Charging over 2% for them to manage the current loans into drawdown is extremely high.

Albermarle

dunstonh said:

I recall a number of years ago the thread about their daft name and it was cool with the hacking kidz.

I have had three P2P platform investments, and all three have now ended in a similar way. Still made some profits though, if nothing spectacular.

It was expected that most would fail when market conditions changed and when tighter regulation started to bite.   It was a case of making hay whilst you could.

For many P2P platforms you are right, but Assetz has just seen retail money inflows dry up due to the improvement in savings interest rate. So they are winding down their P2P platform in an orderly fashion, and concentrating on their main business. My other two P2P platforms did something very similar. So a bit of a pain having to wait for  long wind downs, withdrawing cash/transferring ISA money at intervals, and paying a fee for the privilege, but overall will still have made a modest return.

tostaky

So i now need the money i had invested last year in Assetz (90 days access and quick access)
I realise it is not possible to withdraw at the moment however i understand that 6 months after the 28th of Nov they will starr allowing withdrawals again. 

How likely it is i will get my money in full?
how likely is it i will get my money shortly after that 6 months period?
is it at all possible to withdraw the money (perhaps by paying penalty fees or offering a discount)? 

Many thanks

pafpcg

From my understanding of the current situation for retail lenders in the Access Accounts at Assetz Capital:

1. All funds in the 30-day and 90-day Access Accounts have been transferred to the Quick Access Account (QAA).

2. "I realise it is not possible to withdraw at the moment however I understand that 6 months after the 28th of Nov they will start allowing withdrawals again."
It's more like: "there will be no cash withdrawals (except for interest payments) for at least six months".  Don't rely on getting anything in 2023 - it's entirely at the discretion of AC.

3. "How likely it is I will get my money in full? And how likely is it I will get my money shortly after that 6 months period?"
Unless AC has a radical change of mind, you won't get a full repayment of capital for several years, maybe five or more years.
The plan is to return capital to lenders as the individual loans to borrowers are repaid to AC - some won't mature for years anyway and some will default so capital returns will be even slower and, for some loans, there'll be a shortfall.  So to answer your questions, there is a distinct probability that you won't get 100% of your capital returned and expect the bulk of returned capital to be spread out over a couple of years.

To compound the issue, repayments will be pro rata for the retail lenders - lenders who have "invested" larger sums with AC will get more than those who have smaller balances.  So, no matter how large or small your balance is, you'll be waiting for a full return of your capital until AC finally wind-up the QAA accounts, along with all the other retail lenders.

4. "Is it at all possible to withdraw the money (perhaps by paying penalty fees or offering a discount)?"
No.  We are all locked-in waiting for several years unless AC has a change of policy.  But keep withdrawing the monthly interest payments.

Albermarle

I agree with the above comments.
I would hope most of the money will be returned within 3 years, and then a slow dribble after that.
Hopefully they will have some kind of close off at some point, rather than leaving accounts open for years with just a few pounds owing/waiting for bad debt collections.

robot1000

Something which hasn't been mentioned is the 'future funding commitments' as this will tie up the investments even longer.

tostaky

Thank you all
For years??? 
but they do say they will start in 6 months time… 
you say up to 3 years… i assume this is based on previous experience? 

Any ballpoint idea of how mich might be returned? 90%? 75%? 50%?

Thanks a lot

my money is still in the 90 days access fund, it doesnt show has having been transferred to the quick access account.

robot1000

I would recommend using this forum:

https://p2pindependentforum.com/board/28/assetz-capital