BondMason

BondMason was a United Kingdom-based direct-lending investment manager headquartered in Harpenden, England. Founded in 2013 by Stephen Findlay, an accountant with private-equity experience, the business developed a platform through which investors could obtain exposure to direct lending, particularly loans secured against property in the UK. Its activities combined elements of peer-to-peer lending, investment management, bond issuance and fund-based investing. The company’s platform operated from October 2015 until May 2019. During that period, BondMason presented itself as a route for clients to access loans that were originated or selected by the business rather than investing through conventional deposit products or publicly traded securities. Its principal focus was property-backed lending, an area in which security over real estate was intended to provide investors with additional protection compared with unsecured lending. The platform offered bonds and investment funds alongside its peer-to-peer lending activity. BondMason also participated in the development of the UK alternative-finance sector. It produced proprietary research on direct lending and peer-to-peer lending trends, including estimates of market growth from approximately £2.3 billion in 2015 to £3.2 billion in 2016. The firm was among the early businesses accepted into the Financial Conduct Authority’s Innovation Hub programme, reflecting its position within the emerging financial-technology and alternative-investment ecosystem. Participation in the programme did not itself constitute full regulatory authorisation. The company raised outside equity during its development. In 2016, an investment round was led by Par Equity, an Edinburgh-based venture-capital firm. In March 2018, BondMason announced a further £1.85 million funding round led by Seneca Partners and Par Equity. These investments supported the company’s platform and direct-lending strategy as the UK peer-to-peer market matured and regulatory scrutiny increased. In May 2019, BondMason stopped its core property-lending investment service. The company attributed the decision to concerns about the credit outlook rather than financial distress, and it stated that clients had received more than 100% of their invested capital back. Stephen Findlay also indicated in an interview that the platform had encountered difficulty obtaining Financial Conduct Authority regulation. The cessation of the platform marked the end of BondMason’s principal peer-to-peer lending operation. The current status and any continuing activities of the corporate entity are not established by the supplied reference material.

BondMason was established in 2013 by Stephen Findlay, an accountant whose professional background included private equity and work at Fidelity Equity Partners. The company entered the expanding UK alternative-finance market by developing a direct-lending investment proposition rather than a conventional banking or asset-management product. Its principal area of activity became lending secured against UK property, with investors accessing the underlying credit through BondMason’s platform. The BondMason peer-to-peer lending platform began operating in October 2015. It enabled clients to participate in direct lending and offered investment structures that included bonds and funds. The business model was based largely on loans secured against property, positioning the platform between online peer-to-peer finance and professionally managed alternative investments. The use of property security was central to the proposition, although it did not eliminate investment or credit risk. BondMason also sought to establish authority in the developing direct-lending sector through research and industry analysis. Its published work examined the scale and expansion of the UK peer-to-peer lending market, including estimates that the market increased from £2.3 billion in 2015 to £3.2 billion in 2016. The company was one of the early businesses admitted to the Financial Conduct Authority’s Innovation Hub programme. The programme provided engagement and support for innovative financial businesses, but acceptance did not amount to full FCA authorisation. The company attracted venture funding as it expanded. Par Equity led an equity funding round in 2016. In March 2018, BondMason raised a further £1.85 million in a round led jointly by Seneca Partners and Par Equity. The fundraising took place while UK peer-to-peer lending was becoming more established but was also facing increasing questions about credit quality, platform resilience and the appropriate regulatory framework. BondMason’s core platform operation ended in May 2019, when the company stopped its property-lending investment service. BondMason stated that the decision reflected concerns about the credit outlook rather than financial trouble. The company also stated that its clients had received over 100% of the capital they had invested. In an interview, Findlay explained that the platform had struggled to obtain FCA regulation, which was an important factor in the environment surrounding its activities. The supplied sources do not establish whether BondMason continued with another business model after the platform’s closure, and the present status of the corporate entity is therefore uncertain.

• 2019

  Core property-lending service ends

  [1]BondMasonen.wikipedia.org

  BondMason ceased its core property-lending investment service in May, citing concerns about the credit outlook.

• 2018

  BondMason raises £1.85 million

  [1]BondMasonen.wikipedia.org

  The company secured £1.85 million in equity funding in a round led by Seneca Partners and Par Equity.

• 2016

  Par Equity leads equity funding round

  [1]BondMasonen.wikipedia.org

  BondMason completed an equity funding round led by Par Equity.

• 2015

  Peer-to-peer lending platform begins operations

  [1]BondMasonen.wikipedia.org

  BondMason’s peer-to-peer lending platform began operating in October, focusing mainly on property-backed UK loans.

• 2013

  BondMason is founded

  [1]BondMasonen.wikipedia.org

  Stephen Findlay founded BondMason as a direct-lending and alternative-investment business.

Alternative-investment and direct-lending manager offering investors access to primarily UK property-backed loans through peer-to-peer lending, bonds and funds.

• Peer-to-peer lending · 2015

  Peer-to-peer lending platform

  BondMason’s online platform allowed clients to obtain exposure to direct lending, primarily through loans secured against UK property. It operated from October 2015 until May 2019, when the company discontinued its core property-lending investment service.

• Direct lending

  Property-backed lending investments

  These investments gave clients access to loans secured mainly against UK property. The security structure was intended to support the investment proposition, while the underlying returns remained dependent on borrower performance, credit conditions and the recovery of collateral.

• Investment products

  Bonds and investment funds

  BondMason offered bonds and investment funds as additional ways for clients to gain exposure to direct lending. The supplied material does not specify the individual product names, detailed terms or continuing availability of these offerings.

• 2019

  Withdrawal from core property lendingStrategy

  Background

  BondMason operated its peer-to-peer property-lending platform in a market facing changing credit conditions and increasing regulatory expectations. The company also reported difficulties obtaining FCA regulation.

  Action taken

  In May 2019, BondMason stopped its core property-lending investment service.

  Aftermath

  BondMason said the decision was driven by concerns about the credit outlook rather than financial distress and stated that clients had received more than 100% of their invested capital back. The sources do not establish the company’s subsequent operating status.

  Source

• 2019

  BondMason ends its core property-lending investment service[1]BondMasonen.wikipedia.org

  Regulation

  BondMason ceased its core peer-to-peer property-lending service in May 2019, citing concerns about the credit outlook and reporting that clients had received more than 100% of invested capital back.

• 2018

  BondMason secures £1.85 million funding round[1]BondMasonen.wikipedia.org

  Other

  A further £1.85 million equity round was led by Seneca Partners and Par Equity.

• 2016

  BondMason raises equity funding led by Par Equity[1]BondMasonen.wikipedia.org

  M&A

  BondMason completed an equity funding round led by Par Equity as it developed its direct-lending and peer-to-peer investment platform.

1. 1BondMasonen.wikipedia.org