These loans were originated via Lending Club, the world’s largest P2P lender which is 80% funded by institutional investment. The loans will be purchased by Eaglewood’s new vehicle – the Eaglewood Income Fund. Eaglewood is an investment management firm specializing in investing in online lending strategies. Last year Eaglewood completed a $53 million unrated securitization and this latest deal brings its total issuance in the peer-to-peer sector to $175 million.
Jon Barlow, Eaglewood’s Chief Executive Officer and Chief Investment Officer commented:
“We are excited about the closing of our second securitization, which we expect to support the ongoing growth of our firm.”
Waterford Capital and Bonwick Capital Partners served as the structuring and placement agents to execute the transaction. David Piotrowski, Managing Director at Waterford Capital said:
“We are very pleased with the execution and acceptance of this non-rated securitization. The asset-backed market is clearly welcoming online marketplace loans as a new and upcoming asset class”.
Ray Gatten, Managing Director at Bonwick Capital added his thoughts:
“This transaction was a great success and represents growing investor interest in this rapidly expanding asset class.”
The portfolio of loans is selected by Eaglewood’s in-house algorithm, which includes a weighted average borrower FICO score of over 695 and a weighted average interest rate of 11-12%. All of the securitized loans are relatively short term, with a maturity of just 3 years.
Earlier this year Marshall Wace, the hedge fund with over $18 billion of assets under management, acquired a majority stake in Eaglewood. Marshall Wace has been driving forward investment into the peer-to-peer space through the P2PGI vehicle, which purchases loan assets from a variety of platforms in the sector.