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LandlordInvest Winding Down – Brief Thoughts
Just brief thoughts on this new story.
LandlordInvest is apparently winding down at the insistence of the FCA, which appears, according to brief reports from Alternative Credit Investor, to have issues with its CEO, Filip Karadaghi, who has been forced to step down.
We have no substantial information on this wind down.
While LandlordInvest hasn't been rated by 4thWay for a long time, we've never received any warning signs in the data we have received from LandlordInvest or other sources up to today's date.
Despite a modest director loan mentioned by Alternative Credit Investor, I personally also haven't seen any significant signs of what we call “moral hazard” (i.e. personal behaviour indicating that the people running it will not behave with integrity). Indeed, behavioural signs have so far all pointed towards strong standards of integrity.
I have no concerns for existing lenders at this stage, despite the FCA's approach. I currently expect that all lenders will receive all their money back, plus interest, as it winds down (although, again, I have limited information).
Read more about the regulator's approach in Why Is Low-Risk P2P Lending Labelled As “High Risk”?
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