Prime Meridian Capital Management Launches New Real Estate Marketplace Lending Fund
Prime Meridian Capital Management, which specializes in an online peer-to-peer (P2P) lending strategies, has announced the launch of the Prime Meridian Real Estate Lending Fund, a first-of-its-kind, open-ended, multi-platform marketplace real estate lending fund. It offers investors a diversified, short duration, first lien real estate loan portfolio, and no hard lock-up.
P2P/Marketplace lending is the practice of lending money to unrelated borrowers through an online marketplace without going through traditional financial institutions such as banks. There are four major categories of P2P lending: consumer credit, small business, student loans, and real estate.
The Prime Meridian Real Estate Lending fund was established to capitalize on the burgeoning real estate marketplace lending vertical by creating a portfolio of broadly diversified first lien real estate loans in the commercial, multi-family and single family property types. Historically, the types of real estate loans the fund is investing in have been predominantly offered by regional banks. Due to the Great Recession’s real estate down turn, regional banks were left with too much real estate on their balance sheets and many banks discontinued this type of lending due to Dodd-Frank. P2P and marketplace lending platforms have begun to fill the void through applied technology to provide consistent, quality underwriting without the red-tape and delays associated with banks.
“We are very excited about the Prime Meridian Real Estate Lending Fund”, says Don Davis, managing partner for Prime Meridian Capital Management. “Unlike so many investors and managers that chase yield at any cost, we carefully consider how to create the best risk adjusted portfolio by taking into account diversification of location and property types as well as first lien positions, strong LTV, and personal guarantees.”
The company’s flagship Income Fund, which gives investors the ability to participate in the consumer credit market through Prosper and Lending Club, was one of the first P2P lending funds in the U.S. and is now in its fifth calendar year of profitability without a monthly drawdown. Since then, Prime Meridian has launched the Small Business Lending Fund, and the Poise Lending Fund (levered prime consumer).
Now, Prime Meridian brings that same knowledge, experience, and technology to P2P real estate lending. The Real Estate Lending Fund is (like the other Prime Meridian funds) limited to accredited investors.
To learn more about Prime Meridian Capital Management and P2P lending, visit www.pmifunds.com.
About Prime Meridian
Prime Meridian Capital Management is an investment management firm specializing in online/Peer-to-Peer (P2P) Marketplace Lending strategies. Our funds provide investors with access to short-duration, high yield loan portfolios by taking advantage of the efficiencies in the burgeoning P2P lending space. Loans include consumer debt consolidation, small business financing, real estate, auto financing, and more. We select loans using a risk-based pricing approach that focuses on yield, duration, and credit quality with the objective of achieving consistent returns that have low volatility and low correlation to other asset classes. The construction of our funds is designed to create a diversified loan portfolio in each of P2P/Marketplace Lending verticals: consumer loans (Prime Meridian Income Fund), small business loans (Prime Meridian Small Business Lending Fund), leveraged consumer loans (Poise Lending Fund), and real estate loans (Prime Meridian Real Estate Lending Fund). For more information, contact 925-587-5075 or visit www.pmifunds.com.
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