Market updates and sector developments

The US SEC has determined that securitised assets funds, including CLOs, are exempt from its Private Fund Advisers Rule. The new rules aim to protect private fund investors by increasing transparency, competition and efficiency in the private funds market. To enhance transparency, the rules will require private fund advisers registered with the Commission to provide investors with quarterly statements - detailing certain information regarding fund fees, expenses and performance – as well as an annual financial statement audit of each private fund it advises.

The LSTA - which opposes multiple sections of the final rule - notes that the rule would have imposed significant additional disclosure obligations that are of no value to CLO investors and would have prohibited or limited many important practices that are standard in the CLO market. The association remains concerned that this rule may have been adopted without appropriate regard for the substantive and procedural requirements imposed by Congress on SEC rulemakings and may exceed the SEC’s statutory authority.

In other news…

Consumer lender acquisition agreed
Digital lending platform auxmoney has acquired the majority shareholding in Dutch consumer credit marketplace Lender & Spender. With this step, auxmoney builds upon its continued organic growth over recent years, as well as expands its international reach and product range.

The two platforms entered into an integrated partnership in June 2022, whereby auxmoney had begun investing in the Lender & Spender business and helped establish debt-based funding structures with a leading investment bank. Since the launch of the partnership, Lender & Spender was able to grow its loan origination more than fivefold and at strongly improved loan economics.

Founded in 2015, Lender & Spender currently employs 32 staff and originates annualised volumes of close to €200m in new loans. The platform will continue to operate under its own brand in the Dutch consumer market and remain headquartered in Amsterdam.

The transaction remains subject to approval of local authorities.