Investment Strategy

Exploiting opportunities in a changing financial services landscape

01 Providing Capital. Financing Performance

Control, partnership & alignment of interests

Pollen Street understands and controls the credit box. Where appropriate, we deploy our own scorecards and underwriting or lock down existing processes. We have input into the underwriting journey and aim continuously to improve its speed and accuracy.

We also control the servicing strategy, using our own experts who direct and partner with best-in-class loan servicers. This delivers optimised collection strategies at low cost.

We partner with highly experienced teams and ensure that our deal structures deliver alignment of interests, long-term access to growth capital and real business partnerships. Our presence enhances performance while providing financial support.

02 Investment Opportunities

Why we specialise in financial services lending and investing

Why we specialise in financial services lending and investing.

Bank repositioning provides an opportunity to disintermediate many attractive asset classes

  • Changes to regulatory capital requirements create inefficiencies in certain asset classes.
  • Heavy cost structures – branch infrastructures, payroll etc - impair banks’ competitiveness on small loans.
  • A growing part of the economy is underserved by traditional banks.
  • Banks' focus on commoditised and large-scale markets creates opportunities for specialist lenders.

Wide set of investment opportunities

At the same time, advances in data and technology facilitate an alternative lending model.

  • Big data and transparency have levelled the information playing field with banks.
  • This enables strong risk models and large datasets with which to accurately evaluate borrowers’ creditworthiness and default probability.
  • High quality operators are able to compete with attractive service propositions.
  • Entrepreneurial leaders create new winning models and go the extra mile to deliver customer service.
  • Technology-enabled platforms benefit from lower infrastructure costs, compared to bricks-and-mortar traditional banks.