Senior Secured Loans and Bonds in affordable minimum sizes

We'd like to introduce members of this forum to WiseAlpha (www.wisealpha.com). We are the only online platform in the world that allows retail investors to invest in individual senior secured loans and bonds (with min. denoms of £100k to £1m) in affordable sizes (min £100 per loan or bond). For further information please see our website.

Read here what the press is saying about us:

http://www.cityam.com/248194/slice-major-players-wisealpha-enables-you-invest-big-firms

More press here:

https://www.wisealpha.com/about-us/media-centre

Comments

  • I liked the sound of this, however as I'm always a nervous nelly, (hence I like bond investing) I thought I'd validate one of the bonds on their website. I like Enterprise Inn bonds so looked at the Oct 2023 6% which is on their website but not on this one. The yield to market is quoted as 5.7% which seems high to me for a bond which wisealpha say is backed by £3.7B of properties. Further checking I looked at the bond offering circular which says the £250m bond is actually backed by property valued at £362m, a very big difference!!! It could be I'm just wrong, it could be Wisealpha are a reputable organisation, or it could be something else! Anyone else have any thoughts?
  • Corporate Setup - Single Director ( I would like to see more!)
    Small business,
    Suggest that you review Companies House Documentation to ensure you are happy
    https://beta.companieshouse.gov.uk/company/08967521/filing-history
    Afraid not for me any my financial assets are in SIPP/ISA accounts
  • Hi John, there are around £2.2bn of bonds outstanding (the £250m Oct 2023's are just one tranche of bonds out of the £2.2bn). All of the different tranche of bonds benefit from pooled security over the £3.7bn of property and all other company assets (Enterprise Inns provide this value in their annual reports after an independent valuation was carried out).

    Shaun, our platform is SIPP eligible but not yet for ISAs (we are working on it).
  • Remember that you will not own the bond you think you are buying rather you will have a loan note from WiseAlpha backed by the underlying investment. You can't sell this in the market but only sell it back to WisaAlpha at their discretion and to a matched buyer at a price to be determined maybe a lot later than your sell order, unlike a bond on ORB where any market maker will trade immeiately at a known price.
    I can't see the advantage to most investors. Watch out for the 1% pa charge too.
  • Beekey that's correct, although the main advantage in our platform is that it allows smaller investors to participate in loans and bonds with higher denominations. And when it comes to loans these are not available for individual investors to buy into, even large individual investors. We will be adding more loans once we see visibility of the BoE rate and Libor rising and when new issuance comes at a wider spread.

    We are clear on our site that at the moment our secondary market is not liquid but in the future we will be introducing robo-liquidity and robo-management tools which will enhance the speed.

    Larger and more sophisticated users (that can evidence experience in this asset class and others) can also request access to a wider array of non-listed credit investments (e.g. Second lien, Mezz, private bonds, and structured credit).
  • I hope that by using this forum as an advertising medium you are contributing to the cost of running the fixed income investor website.
  • Just an observation from my experiences.

    Over arching was a frustration in attempting to make verbal contact with them . Over a period of 2 days of auto rediial and manual calling I never was able to make contact with them. It was only when the CEO sent a generic email that a direct contact number was provided. Beside some retoric in respect of no record of my calls being recirved (even if unanswered), it did leave a feeling that this is a shoe string operation.

    On the commercial proposal - The matter of the bonds/loan notes being held by a Parent (AW) and with investors reliant on the solvency/operations of the parent has been mentioned on this thread and other social media. Unless AW can give greater assurances the risk v reward is for myself unattractive. Similarly I am uncertain if AW will eventually have numerous financial operations or wil it operate akin to s SPV and thus limit potential misuse of client/investor funds for other ventures.

    In summary 10/10 for concept, but offering and support needs to be reviewed and surely there is some mechanism where legal ownership of the bond can be transfered to the end investor while acknowledging the commercial interface of AW
  • Hi ArthGoch, we are sorry you had trouble connecting with us. In the event that a member of staff is unavailable to take your call if you leave a message we will always endeavour to respond to you as quickly as possible. We use customer service software provided by Zendesk (which is used by businesses across the world) to record incoming calls and messages.

    Our customers can either contact us via our customer service line, email, or arrange a time to talk with a member of staff shortly after they join. All new people who register with us receive a direct contact number and staff member to speak to if they need help getting started.

    Just to clarify all client assets (loans and bonds) are held in an SPV whose sole purpose is to hold the assets and issue our Notes to investors which are backed by these assets. There are no other operations and this SPV is not a parent. This SPV is overseen by an independent administrator. This set up is similar to that which a fund manager would operate with a fund vehicle that holds the assets of the fund and which has also employed a fund administrator. We are also authorised and regulated by the Financial Conduct Authority.

    When you are dealing with private debt instruments such as loans (where there is no market mechanism for individuals to invest directly or transfer) or high minimum denomination bond investments it is not possible for smaller investors to hold the underlying bond hence our neat solution that allows WiseAlpha members to participate and find liquidity internally.
    This may change over time as we work with regulators, banking institutions and government bodies to create rules and mechanisms similar to other mainstream asset classes.
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