Strategy

UK's Schroders Buys Into Dutch Business Finance Firm

Tom Burroughes Group Editor 5 April 2016

UK's Schroders Buys Into Dutch Business Finance Firm

The UK-listed investment and wealth manager has entered a strategic relationship with a Dutch lending firm focusing on the SME sector.

UK investment and wealth management firm Schroders has entered a strategic relationship with Dutch direct lending firm NEOS Business Finance, acquiring a 25 per cent stake in the business that was launched in 2012.

NEOS Business Finance provides institutional investors access to an alternative debt financing platform for Dutch small and medium-sized enterprises and has developed an approach to give SMEs access to small to medium size loans through a standardised issuance and loan terms process.

The development shows how at a time when banks’ traditional lending to SMEs and individuals has been squeezed since the 2008 financial crisis, alternative forms of financing, such as peer-to-peer lending and other routes, have arisen to fill the gap.

NEOS Business Finance will provide investment advisory services to Schroders in connection with the management of investment funds of Schroders' clients investing in SME financing, a statement from Schroders said.

So far, NEOS Business Finance has launched one investment fund funded by two large Dutch pension funds. It also works with ABN AMRO, the Dutch banking group, to source SMEs that need financing.

Michel Vermeulen, country head for Benelux, and Boudewijn Jansen, business manager for fixed income, will be joining the NEOS Business Finance board, representing Schroders, the statement added.

 

Register for WealthBriefing today

Gain access to regular and exclusive research on the global wealth management sector along with the opportunity to attend industry events such as exclusive invites to Breakfast Briefings and Summits in the major wealth management centres and industry leading awards programmes