Bank disrupter Prospa readies first pitch to fund managers

Privately-owned small business lender Prospa will start its search for new investors in coming weeks, when it fronts local and offshore fund managers ahead of a planned initial public offering.

It’s understood Macquarie Capital and UBS’s equities desks have been booking fundies to meet Prospa management in Sydney, Melbourne, Auckland and Hong Kong during the first week of February, for a non-deal roadshow.

Prospa’s expected to be pitched as the first true major bank disrupter in small business lending.

It’s expected to tell fund managers it is the biggest unsecured lender to small business and also the biggest online lender to small business, with loan originations of more than $500 million.

The meetings come ahead of Prospa’s planned run at the ASX-boards.

The company was founded by Greg Moshal and Beau Bertoli about five years ago and is backed by a handful of well known venture capital funds including Airtree, SquarePeg and Entree Capital.

Its most recent funding round valued the company at $235 million. Prospa lends between $5000 and $250,000, unsecured, to small business for up to a year. The average loan size is $25,000 and the company has a referral partnership with Westpac Banking Corp.

Should Prospa make it to an IPO, it is expected to seek a similar valuation to fellow financial services disrupter Netwealth.

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Source: Bank disrupter Prospa readies first pitch to fund managers | afr.com