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Author Topic: Direct Lending Investments

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Direct Lending Investments
OP: December 31, 2014, 12:00:00 AM
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?
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b
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Direct Lending Investments
#1: December 31, 2014, 12:00:00 AM
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.
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#2: December 31, 2014, 12:00:00 AM
Bryce, I know you are fully capable of doing this direct.  Why did you choose to go thru a middleman?
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T
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#3: December 31, 2014, 12:00:00 AM
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.
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#4: December 31, 2014, 12:00:00 AM
Thanks Bryce.  I am assuming that could be custodian of an IRA as well.  Minimum $50K investment?
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#8: December 31, 2014, 12:00:00 AM
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?
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#10: January 01, 2015, 12:00:00 AM
Thanks for the clarification Brec. Makes sense.
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#11: January 21, 2015, 12:00:00 AM
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-loans

I 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?
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#12: January 22, 2015, 12:00:00 AM
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.
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#13: January 22, 2015, 12:00:00 AM
Yep. Exactly. Future commitment. May not happen.
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#14: January 22, 2015, 12:00:00 AM
Thanks guys.
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