Member Article

OFF3R to help investors track alternative investments with new index

OFF3R, the alternative investment platform, has launched a new monthly index aimed at helping investors gauge returns and risks when investing on P2P and crowdfunding platforms.

The index, which will track month-on-month performance of alternative lending platforms, will analyse data from the biggest crowdfunding platforms and P2P lenders, including Zopa, Crowdcube, Seedrs, Landbay and a raft of others.

According to OFF3R’s first index, campaigns on the main equity crowdfunding platforms raised £216.25m in the past 12 months while P2P platforms facilitated £2.6bn-worth of lending between October 2015 and September 2016.

Lex Deak, Chief Executive Officer and Co-Founder at OFF3R believes that the current political and economic climate has meant that more investors than ever are turning to alternative investments.

He said: “Our Index is part of our mission to educate and empower investors to make informed decisions and get better returns. We’re excited to be launching this report at such a critical time.

“Traditional investors have had a tough year: interest rates hit record lows, inflation rates are set to increase and the economy is suffering from Brexit uncertainty. These events alongside low returns are encouraging investors to consider alternative investment options.”

The number of P2P lending platforms has expanded dramatically in recent years, as traditional banks have reined in their lending to small businesses.

Once a niche form of lending, P2P has become an increasingly mainstream channel for business lending with investors also benefitting from favourable terms.

Commenting on the sector’s post-Brexit growth, Deak added: “P2P continues to be popular with investors, the market increased amounts lent during the post-Brexit period, with September being the strongest performing month on record with £234 million being lent.

“The Government has bought into its potential and the market is increasingly robust.”

Launching in 2015, OFF3R styles itself as an alternative investment platform, helping to inform users on alternative investment options and providing a gateway to finance options for businesses.