Australian fintech launches alternative fund

Australian fintech and fully licensed marketplace lender, Zagga has launched its Alternative Growth Fund aimed at wholesale investors, including self-managed super funds (SMSFs), which will target net returns of 6.5 per cent per annum.

The fund, which would have the minimum investment for wholesale investors of $50,000, was designed to add scale to the Zagga business model which uses a bespoke algorithm to match wholesale investors with borrowers, the firm said.

The fund would aim to offer wholesale investors an exposure to a range of loans secured by registered mortgages over real property located across Australia.

Also, the fund would be entirely invested in the firm’s approved marketplace lending deals.

Zagga’s chief executive, Alan Greenstein said: “We launched this business earlier this year believing we could capitalise on the demand by successfully matching investors looking to diversify their investment portfolio within Australia and increase returns, without a direct increase in risk, with quality borrowers hampered by cumbersome application processes and feeling the pressure of tighter credit conditions.

To read more about the alternative fund, please click on the link below…

Source: Australian fintech launches alternative fund – Money Management