Funding Circle secures £500m funding commitment from Castlelake
By Michele Maatouk
Date: Tuesday 11 Aug 2026
(Sharecast News) - Funding Circle said on Tuesday that investment manager Castlelake will provide up to £500m of funding to the SME finance platform over a two-year period.
It said the agreement with Castlelake further diversifies its pool of institutional funders, which includes banks, asset managers, pension funds, insurance companies and government-backed entities.
"The large pool of institutional lenders supports Funding Circle's capital-light business model, enabling the business to scale efficiently, while underlining the continued appeal of UK SME lending as an asset class that delivers robust, attractive returns to platform investors," the company said.
Chief capital officer Dipesh Mehta said: "We're delighted to welcome Castlelake as a new investor to the platform. Continuing to attract new institutional capital reflects the performance of our technology, data and credit expertise, and the attractive returns our platform has been able to deliver.
"This agreement further expands our deep and diverse funding base and means we can say yes to even more small businesses, putting vital funding to work to support the real economy and drive economic growth across the UK."
At 1550 BST, the shares were down 2.1% at 228.15p.
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