Crowdfunding is a way for many people to invest in a company or project, usually via an online funding platform. This form of investment bridges the funding gap between smaller companies and banks.
In 2015, more than £2bn was raised by UK businesses via crowdfunding and peer-to-peer (P2P) lending, according to research by Cambridge University and Nesta*.
Crowdfunding has become increasingly popular with both investors and companies looking for capital because:
Downing LLP is a long-established FCA-authorised investment manager. In March 2016, it launched its crowdfunding platform, Downing Crowd, offering bonds backed by tangible operational assets. To date, the investments have ranged from country pubs and care homes to sustainable energy projects, such as solar farms, wind farms, hydro power and anaerobic digestion plants.
Downing LLP acts as arranger and security trustee for the bonds, and brings more than 20 years’ investment management experience to these crowdfunding opportunities. Their monitoring fee is contingent on investors’ capital and interest being paid in full.
*‘Pushing Boundaries’: The 2015 UK Alternative Finance Industry Report by Cambridge University and Nesta, 17 February 2016.
**This includes an early-bird bonus.
These investment opportunities are only available to members of Downing Crowd
When you are ready to invest:
When the Bond target or individual Tranches is reached, the Bond/Tranche will close. Investors will then have a 14-day cooling off period, during which time Downing will complete the Bond paperwork and security agreement with the Borrower on your behalf.
Once the cooling off period is over, we will transfer funds to the borrower on receipt of your Bonds and the signed security agreement. This is when you will start to earn interest.
You will receive a digital copy of your Bond certificate by email, and also be able to download it from
your account on Downing Crowd.
Downing will provide updates in conjunction with your interest payments.
You can log on to the website to see a record of your investments and also to review new offers as they become available.
Downing makes sure all the information is provided upfront so you can be confident there will be no hidden surprises.
Borrowers will pay Downing a fee for originating the deal, and carrying out the due diligence, assessing the risk and preparing and signing off the offer Documents.
Downing will receive a reduced annual monitoring fee on all Bond applications made during the early bird period and a higher fee on all applications made after the early bird. The annual monitoring fee is contingent on investors having been credited with capital and interest in full, on repayment of the Bond.
Downing charges an administration fee of £25 to administer Bond transfers. This fee is not charged where a Bondholder is deceased.
All fees are exclusive of VAT, where applicable.
|DDF Property Bond|
|Bond size||£1.75 million|
|Warren Energy AD Bond|
|Bond size||£3.95 million|
|LTV||Estimated at 71%|