Anyone investing in this? If so how does it work exactly? I know what they do but do you sign up for an account there or buy their fund through an investment firm? Are you happy so far?
It's an investment fund for accredited investors only. You have to meet certain suitability criteria. You ask the general partner for a private placement memorandum that lists out how everything works, and then if you choose to invest you sign some subscription documents and wire your money to a custodian. The fund reports account values monthly, along with a letter from the GP. I've invested since May 2013; been a solid performer with little variance.
Bryce, I know you are fully capable of doing this direct. Why did you choose to go thru a middleman?
In early 2012 I read about Brendan on this website and found he lived in the LA area. I reached out and we've talked ever since. I followed his creation of the fund, we've debated many points about P2P, and he's provided advice and encouragement. So, the answer to your question is that I wanted to support his venture and because it was easy to do. I also believe I am getting more diversification than I would on my own in that particular space.
Thanks Bryce. I am assuming that could be custodian of an IRA as well. Minimum $50K investment?
Thanks for the reply. Was confirming if an investor loses money in the fund (loans start going bad) does Brendan (likely the LLC thats the GP) bears responsiblity?
Thanks for the clarification Brec. Makes sense.
Does anyone know, I thought they were small, short-term loans and then I read about the $250M over three year investment in Biz2Credit.
http://www.wtvm.com/story/27728782/direct-lending-investments-commits-250-million-to-biz2credits-marketplace-lending-platform-to-purchase-small-business-loansI saw something else somewhere too. Sure, it makes sense being a related business, partnering and all, but I thought they loaned up to something like $1M. I didn't realize they were that big of a fund.
But that's a lot of venture capital, basically, right? Now it's seeming more risky. Anyone have any thoughts on this?
They are not that that big, it is called good fund PR:) They make these announcements that they commit up to 100MM, 250MM etc, the a mount actually invested can be 10MM and still not be a lie.
Yep. Exactly. Future commitment. May not happen.
Thanks guys.