P2P Global Investments is a newly listed Peer-2-Peer lender promising an 8% yield


#1

P2P Global Investments is the first global pool of permanent investor capital that aims to profit from peer-to-peer lending. It’s promising fast growt
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#2

15% performance fee every year with no hurdle. Phew, these hedge funds are get away with robbery.

They have the audacity to argue that because they negotiated cheaper platform costs we’ve got an implicit hurdle of 5% (how does that come about?).

With fees like that the only people who will profit long term are the managers.


#3

@WickedInvestor I think in the long run you’re right and only the managers will win but I think is a sticking rotten buy right now. 8% divi is rich mate.

There is the risk they wont get there but I think that’s minimal because they’re investing in different platforms, paying low fees - I mean 0.25% - shocking, plus the management want their performance fee.

Plus it only takes one of those companies to do really well and those warrants could become like goldmines.


#4

I like the investment case but I agree with @WickedInvestor which is a pity because I would certainly have considered investing in this if the managers hadn’t been so bleeding greedy.

If this returns 10% then 1.5% of that goes to the managers and that is just too much in my view.


#5

Yes the fees are high but that’s the model for PE/Hedge funds, if you don’t like it don’t invest.

There is far more potential upside on this than downside. I’d put it at 75/25%.

The flipside of high fees in the form of performance fees is that the managers are highly incentivised - check out private equity returns to confirm that.

An 8% yield is very good and I think they’ll achieve it because competition is no where near to being hot yet.

I agree that it’s not very sensible to invest for the warrants but one or two of them just might prove to be valuable once consolidation or IPO’s start happening.


#6

The charges are high but you know what, it’s a big opportunity because they have first mover advantage.

They have got to be right that the various peer to peer platforms wont be giving away free equity options to to other players because of the obvious reason that they’ll dilute their own holdings too much, so despite the lucrative performance fee I think this is a lovely opportunity.


#7

I don’t quite understand how this peer to peer stuff works but I wonder if it is so lucrative couldn’t you make more by cutting out the middleman and doing it yourself? If they’re getting 8-10% yields wouldn’t you get more if you signed up to one or more of these platforms and lent out money yourself?


#8

There are some interesting points made on the Motley Fool forums about this article that may answer some of @Mammon and others questions…
http://boards.fool.co.uk/performance-fee-on-new-p2p-investment-trust-13045613.aspx?sort=whole#13046294


#9

Interesting (sic) RNS today from said company: http://www.theaic.co.uk/companydata/CBFD7/announcements/2014-11-27/15%3A20%3A28/2258Y

The Company announces that, as referenced in its IPO prospectus, it has elected to designate all of the payment as an interest distribution to its shareholders
So the income should be higher in the hands of a non-taxpayer (including ISA and SIPP holders) than it would otherwise be, but basic-rate taxpayers will have 20% tax deducted, and those on a higher rate will have a corresponding increased liability of their own.

#10

Oh I’m a little bit confused by that Mr @arkwelder. I bought a little bit of this, now it really was a little, I know there are some millionaires on here but I’m not one of them love, £800 was my lot.

Mine is in me ISA so does this mean I’ve done better than other people have?


#11

@MumKnowsBest, you will be doing better than those that don’t hold it in and ISA or a SIPP, and who are taxpayers. You will be entitled to the gross amount.

What you should find is that the payment is made with 20% tax deducted, so your ISA platform manager should reclaim this from HMRC and credit it to your ISA account: they should do this within 4-6 weeks after the interest is received - works the same as interest received from bond funds.

It might be worth getting in touch with the ISA manager beforehand just to ensure that they are aware that the payment is interest income and not a dividend. Give them the link to the RNS for them to check up. If they aren’t aware then you could end up losing that 20%. And keep banging on at them if they don’t take any notice - it’s your money! (Does it show that I’ve had a similar problem in the past over this…? :slight_smile: HgCapital Trust, in my case, which also pays distributions as interest and not dividends).

 

 


#12

I remember reading this article and thinking I should go for this but I didn’t. It’s on a 7% premium now which is a little too rich for me.

Did you invest @arkwelder?


#13

Hi @Andre. No, I didn’t invest - it just doesn’t hold any interest for me, and I do like to have a specific reason to have each of my holdings. Plus, I already have too many and I should be trying to reduce their number, not adding more!

But I do like to keep abreast of some of the goings-on with some ITs, especially some of the newer ones. Always the chance that something of interest might crop up in one at a later date.