The marketplace lender, P2Binvestor, has forged its first institutional partnership with the alternative asset management firm HCG Fund Management LP.
P2Binvestor (P2Bi), the marketplace lender that provides asset-backed working capital to high-growth small and medium-sized businesses, spent the last few months on due diligence to accommodate HCG Fund Management LP, a North Carolina-based alternative asset management firm. The platform retooled its investment product offering to address numerous issues, including the tax requirements of foreign-domiciled funds.
The result was a new institutional investment relationship between the two firms. The agreement regulates the investment process for all accredited investors that use the P2Binvestor platform and enhances the company’s ability to accommodate larger funds.
Krista Morgan, CEO and cofounder of P2Binvestor, offered comment:
“HCG really pushed the envelope on diligence with us. What resulted is a stronger legal and operational infrastructure that improves our overall investment offering and makes it easier for us to work with other funds.”
Similarly to other many peer-to-peer (P2P) funds, HCG is interested in investing in loans originated by this new class of marketplace lending platforms. HCG was attracted to P2Pinvestor for several reasons, including the company’s rigorous and systematic under-writing efforts, the performance of its lending portfolio over the past 18 months and the P2Binvestor team.
Jose Penabad, cofounder and partner of HCG, weighted in:
“After an intensive due diligence process, we determined P2Binvestor is a good fit for our portfolio. We came away from our work impressed with P2Binvestor’s ability to both underwrite and service large credits. From an investment standpoint, we liked that the in-vestment is asset-backed with short duration, attractive yields and broad risk diversification.”
HCG is willing to make P2Binvestor one of their preferred marketplace lending origination partners and is pleased to partner with it. However, the HCG relationship is only one of a number of balls that are presently being juggled for P2Binvestor. Indeed, the platform announced that this partnership marks only the first of several future institutional relation-ships, as the CEO, Krista Morgan, will surely touch upon at the AltFi Global Summit 2015 in New York on November 2nd 2015.
AltFi is returning to Amsterdam for its second annual Summit in the city. The inaugural event last year was a roaring success, with key figures from across Continental Europe's alternative finance and digital banking sectors highlighted. These included Jeroen Broekema, managing director of Funding Circle Netherlands, and Mieke van Engelen, head of innovative partnerships at ABN AMRO's standalone lending platform, New10.