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October 26, 2016
Cadwalader has advised on the first securitization of marketplace consumer loans in Europe. The firm advised the arranger of a securitization backed by £150m of loans to UK consumers originated on the Zopa platform. This is the first public, rated securitization of marketplace consumer loans in Europe.
“This is an exciting milestone in Zopa’s journey. The securitization process has involved detailed scrutiny of our underwriting and servicing practices from both ratings agencies and investors. The market reception validates the robustness of our platform and our prudent lending policies. It brings Zopa personal loans further into the public spotlight and expands the universe of people who can participate in peer-to-peer lending. This supports our mission of providing a fairer financial future to even more customers,” said Jaidev Janardana, CEO of Zopa.
“Cadwalader is known globally for its long history as a leader in securitization, including our development of ground-breaking structures to support our clients’ and the industry’s changing needs,” said Jeremiah Wagner, a partner in Cadwalader’s Capital Markets Practice in London. “As the marketplace lending industry has evolved to attract increased institutional funding, we are helping lenders to raise capital efficiently through new securitization models.”
The deal was led by Capital Markets partner Jeremiah Wagner and included Capital Markets associates Patrick Leftley, Melina Bheekhun and Mitzi Huang, as well as Tax partner Adam Blakemore and associate Catherine Richardson, all in London.
The Zopa deal and other recent, similar transactions continue to solidify Cadwalader’s leading position in the European securitization and Fintech space; Cadwalader was recently recognized by the Financial Times as the most innovative law firm in Europe for its work in helping to develop the alternative finance and marketplace lending sector with new securitization techniques.