Investor returns up by 16.7% in 2018 at Growth Street

Despite a turbulent year in many investment markets, Growth Street’s peer-to-peer investment platform has delivered improved returns to investors during 2018.

The Effective Rate* for Growth Street investors has averaged 5.0% p.a. through 2018 to date. This represents a 16.7% increase on 2017, when investors’ Effective Rate was 4.3% p.a. Although past performance is not an indicator of future results, Growth Street believes that the reduction in volatility of the available Effective Rate may make future returns more predictable.**

The improvement has come following a transformational year of growth. Growth Street is on course to increase the amount of outstanding loans on the platform by over 140% during 2018.

This growth has been delivered by making a series of changes to Growth Street’s borrower origination strategy, such as making significant investments in its credit decision-making technology, and recruiting a national sales team. Growth Street has also focused on targeting larger businesses: in 2017, the average application Growth Street received was for £130k, while in 2018 to date the average application has been £310k.

Following a collaboration with postgraduate students from University College London, Growth Street has also made improvements to its liquidity forecasting and management.

Greg Carter, Growth Street CEO, added: “I’m delighted that we have demonstrated to investors that P2P can be a rewarding asset class. We’ve continued to refine our borrower acquisition strategies and underlying credit technology, and Growth Street has seen a really successful 2018.

As the P2P sector continues to mature, we hope that 2019 will be similarly prosperous, both for our investors and the businesses benefiting from their capital.”