Guildford alternative investment manager Prosper Capital LLP (FRN: 453007) went into creditors’ voluntary liquidation on 1 June.
Jeremy Karr and Simon Killick of BTG Begbies Traynor were appointed as joint liquidators.
The firm acted after The Financial Ombudsman Service upheld complaints about property investments made through Crowd2Let (FRN: 743371), which was an appointed representative of Prosper.
Crowd2Let ran a crowdfunding platform. Investors could buy shares in companies (special purpose vehicles, or SPVs) set up with the intent of investing in property. Investors bought shares in the SPV, and the SPV purchased a property. Income (for example from rent) could be distributed to investors through dividends, and the shares could be sold to generate a capital return when the properties were sold at the end of the term.
In September 2025 the FOS upheld a complaint about Prosper from a complainant who said, “he was misled about the details of a property investment he made through Crowd2Let.com (C2L).”
In February 2026 it upheld a similar complaint and in March the FOS upheld two more complaints against Prosper that it had, “failed in its regulatory obligations by allowing an appointed representative, Crowd2Let.com (C2L) to promote investment opportunities and misappropriate the use of [complainant’s] funds, leading to him suffering a financial loss.”
After receiving the FOS rulings that it should repay the complainants' funds in all cases, and having considered the financial position and received professional insolvency advice, Prosper ceased trading. Its designated members took steps to place Prosper into creditors’ voluntary liquidation.
Prosper received FCA authorisation in August 2006 and applied to cancel its authorisation on 10 June. The application is subject to review by the FCA.
According to the FCA register, Prosper’s chief executive was Paul Thompson. His LinkedIn profile lists him as owner of Prosper Capital.
Crowd2Let was based in Newcastle and had been incorporated in March 2016, according to Companies House records. It was registered as an appointed representative with the FCA in April 2016 but lost its authorisation in August 2024.
Two-thirds, 65%, of its reviews on TrustPilot were one star.
It went into compulsory liquidation in October 2024 and a winding up order was made against the firm in November 2024, with liquidators appointed in March 2025.
Customers of Prosper Capital have been advised to contact the joint liquidators for more details about how they be affected: email:
The FSCS is currently investigating Prosper to decide whether claims qualify for compensation. It is now open to claims for Prosper Capital in relation to the activities of Crowd2Let.
It said although it is accepting claims against Prosper Capital, they will not be immediately passed to its claims processing teams for assessment. It added: "We are currently investigating the firm to determine whether claims meet the qualifying conditions for compensation, and this may take some time."