P2P Property Lending Booming on Both Sides of the Pond

By AltFi on Tuesday 16 September 2014

Alternative Lending

The US peer-to-peer lending platform Asset Avenue – which specializes in commercial real estate funding – has announced that it has raised $3 million in seed-stage funding.

AssetAvenue has taken a rather different approach to its rival platforms within the real estate crowdfunding arena. The platform allows investors to partake in commercial real estate debt. According to Founder David Manshoory:

Investing in debt is lower risk than investing in equity because equity investors can lose everything if they can’t make mortgage payments.”

AssetAvenue was founded in December last year and provides an online marketplace that seeks to match investors – which can include individuals, family offices, hedge funds and asset management companies – with borrowers who need a short-term loan on their property of up to $10 million. The $3 seed fundraising round was led by Matrix Partners and NetEase. The plan is for the capital to be used in order to accelerate strategic partnerships and source new lenders, help the continued growth of its institutional and accredited investor base and expand its proprietary lending platform.

General Partner at Matrix Partner, Josh Hannah, stated:

“AssetAvenue is the most compelling real estate crowdfunding platform available today. The management team’s deep experience and clear focus in the real estate debt market sets it apart from the competition and we believe it will grow to become the largest player in the commercial real estate peer-to-peer lending space.”

AssetAvenue has roughly 50 investors at present – but Mr. Manshoory insists that they all strategic and come from either real estate or private equity lending companies.

Mr. Manshoory explained:

“We are thrilled to have such an incredible caliber of investors supporting AssetAvenue’s mission to revolutionize the real estate investment industry by removing the barriers that have traditionally prevented individuals from investing in commercial real estate opportunities.”

This news continues the trend of massive seed-stage funding rounds within the alternative finance space. Investors are champing at the bit to get a slice of the next big platform – particularly within the peer-to-peer property lending arena, which seems to be booming on both sides of the Atlantic.  

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