Prosper Capital LLP has entered creditors' voluntary liquidation, marking another failure in the UK private credit sector amid a broader industry crisis.
The Financial Conduct Authority confirmed that the firm ceased operations on 1 June 2026, with Jeremy Karr and Simon Killick of BTG Begbies Traynor appointed as joint liquidators to oversee the winding-down process.
The collapse of Prosper Capital underscores the fragility facing smaller private debt managers as the sector grapples with a severe liquidity crunch.
This development follows a series of distress signals across the market, including significant write-downs by lenders who had financed renewable energy projects.
The timing suggests that risk assessments in the private credit space have deteriorated sharply, with lenders recognizing losses months before formal insolvencies are announced.
Wider context reveals a deepening crisis in private debt liquidity.