Darksquare closes 2nd live deal whilst in beta

Investors in this round: Darksquare

Darksquare, a London-based alternative investment platform, has successfully closed its latest investment opportunity – a Landlord Financing facility in partnership with Factored Ltd. This marks Darksquare’s second live private credit deal while still in its beta phase, following an earlier partnership with Plend.

This new deal involves a landlord ‘factoring’ facility that yields in the mid teens annually.

Factored Ltd. will use these funds to provide more factoring lines to their landlord customers. Essentially, Factored purchases up to six months of rent in advance from landlords, who in turn pay a small monthly fee for this service. Historically, such factoring lines have been accessible only to institutional investors, but Darksquare is now opening the door for individual investors to participate.

Daniel Harman, CEO of Darksquare, expressed his enthusiasm: “We’re very pleased to have got this deal over the line. We’re committed to providing our customers with private market investment opportunities with strong security packages, decent yields, and low/no correlation to public markets. This partnership with Factored hits all of the above criteria.”

Adding to this, Alex Whitney, Darksquare’s CTO, emphasised the platform’s innovative approach: “We’re always looking for unique dealflow that you wouldn’t find via more traditional brokers or investment platforms, so we’re really happy to have successfully closed this deal, partnering with Factored.”

David and Ben, co-founders of Factored, highlighted the significance of the partnership: “We are delighted to have collaborated with Darksquare, who have been fantastic partners. By providing landlords with access to capital through future rental income, we empower them to enhance their properties and improve tenant living conditions while also reducing their carbon footprint. This collaboration will help propel our business forward, enabling us to service more landlords and expand our impact on the rental market.”

Understanding Factoring

Factoring is a financial transaction that allows landlords to sell their future rental income in exchange for upfront cash. This enables landlords to meet immediate cash needs and manage payments through monthly installments. The influx of funds can be used for various improvements, such as retrofitting properties, refurbishments, covering maintenance costs, and fulfilling tax obligations—all of which contribute to better living conditions and reduced carbon emissions.

About Darksquare

Founded in 2022 by Daniel Harman and Alex Whitney, Darksquare is an investment platform that focuses on private market, alternative assets. These include private credit, renewable energy projects like wind and solar farms, real estate, and hedge funds. Darksquare aims to level the playing field by providing individual investors access to opportunities traditionally reserved for institutions.

About Factored

Factored Ltd. empowers landlords by allowing them to unlock capital through the sale of future rental income rights. This financial flexibility helps landlords improve tenant living standards and reduce the carbon footprint of their rental properties.

With this new deal, Darksquare continues to make strides towards democratising access to private market investments, providing individual investors with opportunities that offer strong risk-adjusted returns and contribute to meaningful economic and environmental improvements.

Contact daniel.harman@darksquarecapital.com for more info