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My background is that I've invested for years in fractional loans via marketplace lending platforms. Seeing how the return profile for consumer loans in recent vintages has changed, especially on Lending Club, (and this is even before a significant market correction), I've spent more time looking into potentially investing in fractional or whole loans via balance sheet business lenders. I've spent a fair amount of time examining funds that specialize in this area- such as Direct Lending Investments as well as other funds that have pivoted towards this asset class, some themselves from marketplace lending originally such as Victory Park.
I'm interested in making some small investments in loans at first, to gain further familiarity with this space with the goal in mind of allocating larger investments to SMB alternative lending. To that end, would appreciate any guidance on who to talk to regarding investment opportunities. I recognize large lenders like Kabbage are likely not interested in a non-institutional investor to co-invest in their loans; yet at the same time, there are lenders with reasonable track records but at an earlier stage than the Kabbage's and OnDeck's of the world that would welcome such capital.
Any other pointers are welcome- people to talk to, what to look out for, where to begin when it comes to investing with lenders (as opposed to through platforms). Thanks.
I'm interested in making some small investments in loans at first, to gain further familiarity with this space with the goal in mind of allocating larger investments to SMB alternative lending. To that end, would appreciate any guidance on who to talk to regarding investment opportunities. I recognize large lenders like Kabbage are likely not interested in a non-institutional investor to co-invest in their loans; yet at the same time, there are lenders with reasonable track records but at an earlier stage than the Kabbage's and OnDeck's of the world that would welcome such capital.
Any other pointers are welcome- people to talk to, what to look out for, where to begin when it comes to investing with lenders (as opposed to through platforms). Thanks.
