River North marketplace lending fund reaches $72m, joins Fidelity investor platform

By Daniel Lanyon on 11th May 2017

P2P/Marketplace LendingAlternative CreditInvoice Funding

The US-based fund has had a good run since its launch six months ago, beating its index without leverage.

River North marketplace lending fund reaches $72m, joins Fidelity investor platform

The US-based fund has had a good run since its launch six months ago, beating its index without leverage.

Back in September 2016 River North, an alternative asset manager based in Chicago, launched a new fund targeting income investors and offering exposure solely to marketplace – often called P2P – lending.

Since then, the fund the River North Marketplace Lending Corporation - RMPLX  - has provided a stable level of income of short-duration consumer and small business whole loans. The closed-ended interval fund has today reached $72M of assets under management (AUM) as of 30 April 2017.

The fund is a registered 1940 Act closed-end interval fund dedicated to the rapidly growing marketplace lending online lending asset class.

According to the managers of the fund Phillip Bartow and Patrick Galley, demand is high for exposure to the portfolio: “We continue our steady capital raising process which is keeping the portfolio well-diversified across platforms, risk grades and vintages.”

Since inception, the fund has returned 4.46 per cent, which is largely inline with expectations

Fund performance since launch vs index

Source: River North

“We think the aforementioned diversification has been a key driver of the Fund's return stream. It is worth noting that the Fund's returns have been delivered without the use of leverage since its inception,” they said.

River North has also recently revealed that RMPLX was added to the Fidelity Institutional custody platform back in April.

The fund buys and holds whole loans originated from multiple online marketplace lenders in a portfolio of consumer, small business and specialty finance debt assets.

RiverNorth Capital Management is an investment management firm founded in 2000. With approximately $3.4bn in assets under management, 

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