Mohamed El-Erian, the former PIMCO chief executive who famously quit the firm after falling out with founder Bill Gross, has invested in the peer-to-peer lending industry.
El-Erian has reportedly taken a stake in P2P group Payoff, acting as the lead investor in a $12m equity raising. El-Erian (pictured) has also put money into the new venture's lending vehicle, according to the FT. Payoff aims to help borrowers refinance their debt at lower rates than big banks and credit card companies, and will use behavioural science to augment its business, its CEO said. The investment by El-Erian is his first corporate venture since he quit PIMCO - which operates the world's largest bond fund - in January following reports he had clashed with Gross.
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