Half-year Report

P2P GLOBAL INVESTMENTS PLC

INTERIM REPORT AND UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD FROM 1 JANUARY 2016 TO 30 JUNE 2016

26 August 2016 - P2P Global Investments plc (the "Company') today announces its unaudited interim financial results for the period ended 30 June 2016.

Copies of the interim report can be obtained from the following website:

www.P2PGI.com

FINANCIAL AND OPERATIONAL HIGHLIGHTS

*ITD: Inception to date - Excludes issue costs

CHAIRMAN'S STATEMENT

Dear Shareholder, 

I am pleased to present the Interim Financial Report of the Company for the period from 1 January 2016 to 30 June 2016. The first half of 2016 was an eventful period for global markets characterised by increased uncertainty, especially surrounding the UK-EU referendum which had some impact on the Company. Sharp sell-offs in equity indices were witnessed as markets priced in Brexit both before and after the referendum, with investors selling UK homebuilders and financials more aggressively. During this period, the discount in the Company's share price to NAV has widened. The Board is conscious of this and keeps the discount under regular review. During Q2 2016 the Company bought back 237,205 shares at an average price of 826.6p, creating an uplift of 0.5p per share for shareholders.

In addition to general market turmoil, the US marketplace lending industry was the subject of some negative news, with the departure of Renaud Laplanche, CEO of the largest marketplace lender in the world, Lending Club. Short term concerns over data integrity and the availability of lending capital for marketplace lenders following that event had a negative impact on both Lending Club and OnDeck's (the two publicly listed US marketplace lenders) share prices. Marketplace lending is an industry which is still, relatively speaking, in its infancy. Temporary setbacks will occur, but the medium and long term potential remains very compelling being transformative for society, lenders and borrowers alike.

The Company paid a total dividend of 25.2p per ordinary share during the period and delivered a NAV return of 2.37%. The Board recognises that investment returns in the first half of 2016 were below the required run rate to achieve the Company's target dividend return of 6-8% on NAV for the full year. However, the Board currently expects to achieve the target dividend yield run rate as market conditions normalise and the portfolio reaches its full deployment. More than ever before, yield opportunities are sparse in financial markets; nevertheless the Company looks forward to delivering incremental returns to its shareholders as it achieves its target gearing during 2016.

During the period, I was delighted to welcome Mahnaz Safa to the Board as an independent non-executive director. Mahnaz has more than 20 years' experience in finance and is a strong advocate of financial technology innovation. I know she will bring a powerful mix of knowledge and experience to the Board.

SIGNIFICANT POST BALANCE SHEET EVENTS

In July 2016, the Investment Manager, with the approval of the Company's Directors, continued to buy back shares in the open market. The Company bought back an additional 343,769 shares at an average price of 828.8p, creating an uplift of 0.7p per share for shareholders.

OUTLOOK

The underlying credit performance of the portfolio has been stable and remains within expectations, although there are some variations platform by platform. The majority of the Company's exposure is in prime consumer loans, the performance of which is linked to the general macroeconomic conditions. With a favourable employment market, increased house prices over the past five years, and improved consumer affordability, consumers' creditworthiness in our markets remains strong. The pace of growth has declined on several platforms as some lenders have chosen to cut back on new investments. Marketplace lenders also face heightened regulatory scrutiny on both sides of the Atlantic. Whilst some platforms may struggle with increased regulatory requirements, the more established players are expected to benefit as a result of additional requirements from regulators which strengthen their business practices. The permanence of the Company's capital confers a strong strategic advantage during times of temporary market dislocation, such as we have been seeing. When funders are withdrawing in part or in whole from the market, your Company has the ability to point to its reliable capital base as a differentiated strength as a partner for platforms. The powerful proposition of low cost non-bank lending will continue to accelerate demand for loans from high quality borrowers creating new markets and growth avenues. The Board continues to believe that the Company will maintain its position at the forefront of the growing online lending industry, and return a dividend yield within its projected range over the next 12 months.

Stuart Cruickshank

Chairman

25 August 2016

INVESTMENT MANAGER'S REPORT

SUMMARY AND HIGHLIGHTS FOR THE PERIOD

The Financial and Business highlights of the Company for the first six months of 2016 are as follows:

· January 2016: announces 0.41% NAV return on the ordinary shares and 0.48% on the C shares. Also increases its equity stake in four platforms that it previously held investments in.

· February 2016: announces 0.38% NAV return on the ordinary shares and 0.23% on the C shares. Additionally, announces over 90% of the net proceeds of the C share issue will shortly have been invested.

· March 2016: announces 0.48% NAV return on the ordinary shares. Fully invests the proceeds of its C share issue and passes a resolution to convert C shares into ordinary shares.

· April 2016: announces 0.43% NAV return on the ordinary shares. Additionally, announces a dividend of 11.5p per ordinary share for the three month period to 31 March 2016.

· May 2016: announces 0.48% NAV return on the ordinary shares. Additionally, has an equity mark up in one of its equity positions creating 0.18% uplift for shareholders.

· June 2016: announces 0.17% NAV return on the ordinary shares and continues to provide NAV growth for quarter 2 of 1.08% during extraordinary market conditions. At its AGM and GM on the 9 June 2016, all resolutions proposed are passed, including the approval to commence a share buyback programme. The Company buys back 237,205 shares at an average price of 826.6p, creating an uplift of 0.5p per share for shareholders. 

PORTFOLIO COMPOSITION

The Company continued to diversify the portfolio across its geographies and asset classes and is currently reviewing further opportunities in new geographies. The priority continues to be spreading idiosyncratic risk as far as possible, with a view to creating stable returns within the Company's stated return target.

Portfolio Composition as at 30 June 2016

PORTFOLIO COMPOSITION FOR THE PERIOD JUNE 2015 TO JUNE 2016

http://www.rns-pdf.londonstockexchange.com/rns/1877I_-2016-8-25.pdf

MARKET UPDATE

The first half of 2016 proved to be a volatile period for capital markets characterised by increased uncertainty, especially surrounding the UK-EU referendum which had some impact on the Company.

With pollsters, market participants, analysts and bookmakers making mixed predictions about the outcome of the referendum, markets witnessed heightened volatility. After a drop in the probability of Brexit in the week before the referendum, sterling fell sharply when the result on 24 June surprised the markets. The GBPUSD spot rate reached an almost 30-year low in the first week of July as a result of the BoE's immediate indication of a rate cut as further stimulus to support the economy was announced. The days after the result saw a flight to quality which pushed the ever increasing stock of negative yielding bonds to a record level.

Sharp sell-offs in equity indices were witnessed as markets priced in Brexit both before and after the referendum, with investors selling UK homebuilders and financials more aggressively. However, the BoE announcements post-referendum helped the FTSE 100 recover and reach an 11-month high at the end of June, driven largely by companies that benefit from a weak sterling.

Market reaction may indicate that investors have focused their concerns on UK property prices, especially in securities with exposure to prime London property and property development assets. Banks have been impacted by fears around asset quality (a knock-on effect of lower property prices), the impact of lower rates on their net interest margin, and the general economic uncertainty post Brexit. Many UK banks are now trading at large discounts to their book value, and European banks are the worst performing sector across the market, with the key index down about 30% YTD. The long term impact of Brexit remains unclear but the ensuing uncertainty is likely to result in lower consumer confidence and a decline in business investments which in turn may have a negative impact on the growth of the UK economy. At the time of writing, there are some early indications of the effect that elevated levels of uncertainty might be having on consumer confidence and business investments. A GfK survey¹, conducted between 30 June and 5 July, showed that consumer confidence has fallen sharply and a Purchasing Managers' Index² combining flash estimates of services and manufacturing slumped to 47.7 in July, its lowest value since April 2009.

Credit markets saw significant decreases in credit spreads during the year, despite Brexit concerns. With the exception of some high yield names, UK corporate and ABS issuers, global bond indices have rallied significantly. The Bloomberg Global HY Index yield dropped below 7%, whilst the Bloomberg Global IG Index yield dropped to 2.2% from 2.8% at the beginning of the year. Both of those indices are at historically low yields, suggesting that even moderate income is difficult to attain without taking material credit or duration risk.

The US marketplace lending industry was the subject of some negative news, with the departure of Renaud Laplanche, CEO of the largest marketplace lender in the world, Lending Club. Following that event, short term concerns over data integrity and the availability of lending capital for marketplace lenders had a negative impact on both Lending Club's and OnDeck's (the two publicly listed marketplace lenders) share prices.

1http://www.gfk.com/en-gb/insights/press-release/uk-consumer-confidence-dives-post-brexit-1/

2https://www.markiteconomics.com/Survey/PressRelease.mvc/b68c3686a48c40198505b81e4e55cd81

EXCEPTIONAL FACTORS IMPACTING 2016 RETURNS

1. US Consumer platform interest rates

During the first half of 2016 both Lending Club and Prosper raised the average interest rates offered to their borrowers across the entire risk spectrum of loans, including the higher quality grades that are primarily owned by the Company. As a result the Company was impacted in two ways:

a) The Company suffered from an immediate non-cash, mark-to-model valuation reduction on existing Lending Club loans held by Eaglewood Income Fund I, in which the Company is invested. The impact of this valuation adjustment was - 18 bps of NAV in Q2, and barring any further rate changes at Lending Club, represents a one-off occurrence. The Investment Manager reiterates that this valuation adjustment does not reflect a deterioration in the credit performance of the existing book of loans, but rather reflects the change in the interest rate structure for new loans of similar credit quality.

b) Prospectively, the higher interest rates on newly originated loans at Lending Club and Prosper present an opportunity to earn additional yield for a given credit risk in future months; an outcome that the Investment Manager believes bodes well for future returns.

2. FX Hedging and Cash Management

The Company invests globally and typically seeks to hedge its non-sterling currency exposure. Heightened volatility in currencies that the Company has invested in impacts the cost of hedging, and may require higher cash balances than in normal circumstances. About 57% of NAV is composed of investments denominated in USD which witnessed large swings against sterling.

In the weeks leading to the UK-EU referendum, given the large foreign exchange portfolio hedging positions, the Investment Manager decided to hold a significant amount of cash on the Company's balance sheet to ensure that any margin calls could be comfortably met. This excess cash created a negative carry situation. However, the Investment Manager's prudence was justified as the surprise Brexit vote drove GBPUSD from 1.50 to 1.31, prompting a material margin call for the Company against its FX hedges that was met with the cash held aside for this purpose. As FX volatility has since reduced the Investment Manager has decreased the amount of cash on the balance sheet. It has also taken steps to further optimise its cash management process in an effort to reduce the excess cash drag whilst ensuring that the Company can maintain its hedges, and shield investors from material currency exposure in a highly volatile FX market. With effect from the June 2016 NAV, the Investment Manager has decided to waive the management fee on cash balances until such time that they return to less than 10% of NAV.

3. Share Buyback

During Q2 2016 the Company bought back 237,205 shares at an average price of 826.6p, creating an uplift of 0.5p per share for shareholders. The Investment Manager, with the approval of the Company's Directors, commenced the buyback programme after the UK-EU referendum in order to exploit the market dislocation during a period where the Company held excess cash. As per its published discount management policy, the Investment Manager may continue to utilise share buybacks as a tool to manage the share price discount to NAV during periods of market dislocation.

OUTLOOK

Despite recent difficult markets and headwinds created by the Brexit vote, the Investment Manager believes the asset classes the Company invests in offer attractive risk-adjusted returns relative to many fixed income instruments in the market. The Investment Manager has taken appropriate measures to try and ensure that the Company can generate returns in future quarters in line with its stated target dividend yield of 6-8%. Specifically the Investment Manager has:

a) shielded the Company's assets from material risks in currency swings;

b) positioned itself to take advantage of opportunities that have arisen from the shortage of capital for loan originators in the near future; and

c) explored and is working towards a number of new investment and financing opportunities that will enable it to improve its total income and further reduce its cost of financing.

The Investment Manager also sees four areas which should improve returns in the coming months:

1) reduced cash drag as currency markets stabilise and the need to hold cash for FX margin reduces;

2) increased leverage driven by improving availability, breadth and pricing of debt, thus reducing the marginal cost of leverage;

3) increased interest coupon on loans as key platforms raise rates across the US, plus one off income uplifts from incentive programmes from some platforms; and

4) cash management optimisation via investing a portion of the liquidity buffer in fixed income instruments.

The Investment Manager reiterates that the Company's portfolio returns, which consist of direct and indirect exposure to consumer loans, SME, real estate and corporate loans, are more likely to be correlated to macroeconomic trends such as consumer confidence, house prices, unemployment and funding rates, rather than short-term investor sentiment.

The Investment Manager is closely monitoring relevant macroeconomic indicators and may accordingly adjust the portfolio such that it is well diversified across risk segments, geographies and asset classes. Over the long term, the Investment Manager's objective is to build a geographically diversified portfolio. However, the Investment Manager may tactically allocate more funds to take advantage of attractive opportunities in the short term, which may result in over allocation to certain asset classes and jurisdictions.

RESPONSIBILITY STATEMENT OF THE DIRECTORS

For the Period from 1 January 2016 to 30 June 2016

The Directors, being the persons responsible, confirm that to the best of their knowledge:

a) the condensed set of Unaudited Consolidated Financial Statements contained within the half-yearly financial report have been prepared in accordance with International Accounting Standard (IAS) 34, Interim Financial Reporting, as adopted by the European Union, as required by the Disclosure and Transparency Rule 4.2.4R, and gives a true and fair view of the assets, liabilities and financial position of the Group;

b) the Interim Management Report includes a fair review, as required by Disclosure and Transparency Rule 4.2.7 R, of important events that have occurred during the first six months of the financial year, their impact on the condensed set of Consolidated Financial Statements, and a description of the principal risks and perceived uncertainties for the remaining six months of the financial year; and

c) the Interim Management Report includes a fair review of the information concerning related parties transactions as required by Disclosure and Transparency Rule 4.2.8 R.

Signed on behalf of the Board of Directors by:

Stuart Cruickshank

Chairman

25 August 2016

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 30 JUNE 2016

*During the period there was full conversion of the C shares to ordinary shares.

See notes to the condensed consolidated financial statements

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE PERIOD FROM 1 JANUARY 2016 to 30 JUNE 2016 (UNAUDITED)

The total column of this statement represents the Company's Consolidated Statement of Comprehensive Income, prepared in accordance with International Financial Reporting Standards ("IFRS"). The supplementary revenue and capital columns are both prepared under guidance published by the Association of Investment Companies ("AIC"). All items in the above statement derive from continuing operations.

See notes to the condensed consolidated financial statements

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE PERIOD FROM 1 JANUARY 2015 to 30 JUNE 2015 (UNAUDITED)

The total column of this statement represents the Company's Consolidated Statement of Comprehensive Income, prepared in accordance with International Financial Reporting Standards ("IFRS"). The supplementary revenue and capital columns are both prepared under guidance published by the Association of Investment Companies ("AIC"). All items in the above statement derive from continuing operations.

See notes to the condensed consolidated financial statements

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE PERIOD FROM 1 JANUARY 2015 to 31 DECEMBER 2015 (AUDITED)

The total column of this statement represents the Company's Consolidated Statement of Comprehensive Income, prepared in accordance with International Financial Reporting Standards ("IFRS"). The supplementary revenue and capital columns are both prepared under guidance published by the Association of Investment Companies ("AIC"). All items in the above statement derive from continuing operations.

See notes to the condensed consolidated financial statements

CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' FUNDS

FOR THE PERIOD FROM 1JANUARY 2016 to 30 JUNE 2016 (UNAUDITED)

See notes to the condensed consolidated financial statements

CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' FUNDS

FOR THE PERIOD FROM 1 JANUARY 2015 to 30 JUNE 2015 (UNAUDITED)

See notes to the condensed consolidated financial statements

CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' FUNDS

FOR THE PERIOD FROM 1 JANUARY 2015 to 31 DECEMBER 2015 (AUDITED)

See notes to the condensed consolidated financial statements

CONSOLIDATED CASH FLOW STATEMENT

For the period from 1 January 2016 to 30 June 2016

See notes to the condensed consolidated financial statements

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE PERIOD FROM 1 JANUARY 2016 to 30 JUNE 2016

1. GENERAL INFORMATION

P2P Global Investments plc (the "Company") is a closed-ended investment company incorporated in England and Wales on 6 December 2013 with registered number 8805459. The Company commenced operations on 30 May 2014.

The investment objective of the Company is to provide shareholders with an attractive level of dividend income and capital growth through exposure to investments in alternative finance and related instruments.

The Company's investment manager is MW Eaglewood Europe LLP (the "Investment Manager"). The Investment Manager replaced Marshall Wace LLP as investment manager pursuant to a deed of novation on 1 May 2015. MW Eaglewood Americas LLC, an affiliate of the Investment Manager and an SEC registered investment adviser, has been appointed as sub investment manager (the "Sub-Manager") to the Company. The Investment Manager has, pursuant to the Sub-Management Agreement, delegated certain of its responsibilities and functions, including its discretionary management of the Company's portfolio of credit assets, to the Sub-Manager.

MW Eaglewood Europe LLP is authorised as an Alternative Investment Fund Manager ("AIFM") under the Alternative Investment Fund Managers Directive ("AIFMD") from 27 April 2015, replacing Marshall Wace LLP from 1 May 2015, who had acted as AIFM from 30 April 2014. The Company is defined as an Alternative Investment Fund and is subject to the relevant articles of the AIFMD.

The Company invests, directly and indirectly, in consumer loans, small and medium sized enterprises ("SME") loans, advances against corporate trade receivables and/or purchases of corporate trade receivables ("Credit Assets") which have been originated via Platforms or by other originators including, from time to time, the Company or its affiliates. The Company will typically seek to invest in Credit Assets with targeted net annualised returns of 5 to 15 per cent. The Company will seek to purchase Credit Assets directly (via Platforms or by other originators) and may also invest in such assets indirectly via funds, partnerships or special purpose vehicles (including those managed by the Investment Manager, the Sub-Manager or their affiliates) that it deems suitable with a view to enhancing Shareholder returns and providing diversification of the Company's assets.

As at 30 June 2016 the Company had total issued equity in the form of 86,306,803 ordinary shares (31 December 2015: 46,754,919) of which 86,069,598 were outstanding, 237,205 were held as Treasury Shares (31 December 2015: Nil) and Nil C shares (31 December 2015: 40,000,000). These shares are listed on the Premium listing segment of the Official List of the UK Listing Authority and trade on the London Stock Exchange's main market for listed securities.

Citco Fund Services (Ireland) Limited has been appointed as the administrator of the Company (the "Administrator"). The Administrator is responsible for the Company's general administrative functions, such as the calculation and publication of the Net Asset Value ("NAV") and maintenance of the Company's accounting records.

2. SIGNIFICANT ACCOUNTING POLICIES

(a) Basis of preparation

The Condensed Consolidated Financial Statements have been prepared in accordance with International Accounting Standard IAS 34 "Interim Financial Reporting". They do not include all financial information required for full annual financial statements. The Condensed Consolidated Financial Statements have been prepared using the accounting policies adopted in the audited financial statements for the year ended 31 December 2015.

As disclosed in note 12 'Related Party Transactions', the Group invests in a special purpose vehicle, Eaglewood SPV I LP (the "SPV") and at 30 June 2016 is the sole Limited Partner in that SPV. The principal activity of Eaglewood SPV I LP is to invest in alternative finance investments and related instruments, including marketplace loans, with a view to achieving the Group's investment objective. The Group's position with regards to the SPV is that of an investor where its maximum loss is restricted to its investment in the vehicle and in return for this receives a quarterly income distribution. The financial statements of the Group do not consolidate Eaglewood SPV I LP as the Group does not exercise control over its activities, which are vested in the General Partner who, subject to its powers to delegate such functions, shall have and may exercise on behalf of the SPV, all powers and rights necessary, proper, convenient or advisable to effectuate and carry out the purposes, business and objectives of the SPV.

Subsidiaries are investees controlled by the Group. The Group controls an investee if it is exposed to, or has the rights to, variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. The Group reassesses whether it has control if there are changes to one or more elements of control.

The Company controls P2PCL1 PLC (the "Subsidiary") (together "the Group"), a limited liability company incorporated in England and Wales, through its ownership of one Class A Share in the Subsidiary which confers control of the voting rights in that entity. Intra-group balances and transactions, and any unrealised income and expenses (except for currency transaction gains or losses) arising from intra-group transactions, are eliminated in preparing the consolidated financial statements. Unrealised losses are eliminated in the same way as unrealised gains, but only to the extent that there is no evidence of impairment. Subsidiaries are valued at fair value which is deemed to be net asset value.

The Condensed Consolidated Financial Statements have been prepared under the historical cost convention, modified to include the revaluation of investments, and in accordance with applicable accounting standards and with the Statement of Recommended Practice ("SORP") for investment trusts issued by the AIC. All of the Group's operations are of a continuing nature.

The Group's presentational currency is Pound Sterling (£). Assets and liabilities are measured and recognised in accordance with IFRS.

The financial information for the period ended 30 June 2016 has not been audited or reviewed by the Group's auditors and does not constitute statutory accounts as defined in Section 434 of the Companies Act 2006.

(b) Going concern

The Directors consider that the Group has adequate financial resources to enable it to continue in operational existence for the foreseeable future. Accordingly, the Directors believe that it is appropriate to adopt the going concern basis in preparing the Group's financial statements.

3. INVESTMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS