Business
Partnership with Waterfall Asset Management
Funding Circle Holdings plc has announced a significant new £700 million forward flow commitment from Waterfall Asset Management over two years, with senior financing from Citi, alongside Waterfall's purchase of a c.£120 million existing loan portfolio. This transaction transitions Funding Circle's shorter-term loan product from balance sheet to institutional funding, aligning with its strategy to scale successful R&D propositions. The deal deepens the long-standing partnership with Waterfall, which has previously lent over £3 billion through Funding Circle, and strengthens the company's position as a platform lender, enhancing its capacity to meet SME demand for fast, flexible credit. Disclaimer*
About this update from Funding Circle Holdings Plc
[{"type":"text","content":"\n\n\n\n\n\nFunding Circle Holdings plc\nFunding Circle strengthens partnership with Waterfall Asset Management through a new £700 million deal\n\n12-Feb-2026 / 09:35 GMT/BST\nThe issuer is solely responsible for the content of this announcement.\n\n\nLEI: 2138003EK6UAINBBUS19\n12 February 2026\n \n Funding Circle Holdings plc\n Funding Circle strengthens partnership with Waterfall Asset Management through a new £700 million deal\nLondon, 12 February 2026 - Funding Circle, the UK's leading SME finance platform, today announces its latest transaction with Waterfall Asset Management ('Waterfall') and Citi.\nThe agreement consists of two elements that bring direct funding to Funding Circle's shorter term loan product. Waterfall is providing a £700 million forward flow commitment over two years, with senior financing from Citi, alongside purchasing a c.£120 million existing loan portfolio. This transition from balance sheet to institutional funding aligns with Funding Circle's strategy to test and iterate new propositions on balance sheet, before scaling them with partners once the R&D phase is complete.\nThe transaction underscores the deep, long-term partnership between the two firms and their shared commitment to supporting UK small business. Having first partnered with Funding Circle in 2018, Waterfall last year surpassed £3bn in total lending through Funding Circle's platform.\nThe deal further strengthens Funding Circle's funding position as a platform lender, and provides increased capacity to meet the growing demand for fast, flexible SME credit.\nDipesh Mehta, Chief Capital Officer at Funding Circle, said: \"Expanding partnerships is a powerful endorsement of our credit underwriting, and capital markets expertise, and we are proud to once again build on that with this transaction.\"\n\"Waterfall has been a consistent supporter of our platform, and this transaction with Citibank is a result of our shared commitment to finding innovative ways to optimise credit. This significant forward flow deal ensures we can continue to provide UK small businesses with the fast, flexible funding they need to win.\"\nJames Cuby, Head of Europe at Waterfall Asset Management, said: \"We are pleased to deepen our relationship with Funding Circle through this substantial new commitment. Having worked together for ma...