Ranger Direct Lending Fund has committed $30 million to Sharestates.
The Sharestates platform allows accredited investors to participate in pre-vetted real estate projects. And Ranger Direct Lending Fund is a pooled investment vehicle dedicated to direct lending investment. The fund recently floated on the London Stock Exchange for $200 million.
Allen Shayanfekr, CEO at Sharestates, LLC., commented:
"On behalf of all of the team members at Sharestates, I want to express our excitement and appreciation over Ranger's investment. The opportunity allows Sharestates to further enhance and diversify its product offerings while continuing to expand its relationships within the real estate community. It is truly a transformational deal for Sharestates, and a relationship we trust will only grow over time."
Ranger will deploy the $30m in commitments in fraction and whole loan deals through the Sharestates platform. Ranger will invest in residential, commercial and mixed-use properties in New York, scaling the investments throughout the year.
Bill Kassul, Partner in the Ranger Direct Lending Fund, explained:
"In our view, Sharestates is one of the most promising real estate platforms in the direct lending industry. Their on-boarding process was completely transparent and their management team was very easy to work with. We are excited to have them as a partner moving forward."
Ranger Capital Group has $3.2 billion under management and is using the Ranger Direct Lending Fund to add a fixed income product to its portfolio. The fund decided to focus on Direct Lending companies, as opposed to peer-to-peer platforms as the Direct Lending companies have generally been around for years, have historical data and strong management teams with a track record. Additionally, the fund manager can actively select the loans, which Ranger feels is crucial to generating alpha. It will be interesting to see how the returns the Ranger fund generates compare to the returns produced by the funds that focus on marketplace lending, P2P GI and the Victory Park Fund.
Now in its sixth year, the AltFi London Summit returns on 18th March 2019 to 155 Bishopsgate. Last year proved to be a crucial turning point for the key players building the future of finance. Leading platforms launched oversubscribed IPOs, digital banks proliferated and mainstream financial institutions started their own disruptive propositions. With 2019 certain to be another landmark year, more questions will be asked by regulators with investor interest in disruption also poised for more rapid growth.