Partnerships with Colony American Finance and Prime Meridian Capital Management boost Sharestates’ growth.
US real estate investment marketplace Sharestates announced that it has surpassed the $300m mark in total funding set aside for the purchase of loans made on its marketplace lending platform. The added firepower comes courtesy of recent partnerships with Colony American Finance – a provider of financing solutions to residential real estate investors – and Prime Meridian Capital Management – an investment management firm specializing in peer-to-peer lending.
Founded in July 2014, Sharestates is an online investment platform that allows investors to participate in real estate funding projects. Sharestates sources and qualifies potential opportunities and offers securities to accredited investors through an online platform.
Allen Shayanfekr, Sharestates' founder and chief executive officer, commented:
"Institutions, like Colony American Finance and Prime Meridian – as well as accredited individual investors – are looking for partners in this space that have large pools of qualified borrowers to select from and track records that reflect superior underwriting. These loan purchases will enable us to offer frequent opportunities for investors to diversify, while also giving individuals the increased confidence that comes with investing in the same deals as accomplished institutional firms."
Colony American Finance provides investors with real estate financing solutions, including long-term debt products for stabilized rental portfolios as well as credit lines for new acquisitions. Ryan McBride, COO of Colony American Finance, added:
"We are thrilled to expand our presence in the marketplace lending space by partnering with a market leader like Sharestates, which has demonstrated expertise in both deal-sourcing and underwriting."
Prime Meridian Capital Management is an asset management firm that invests in peer-to-peer lending loans. The fund seeks to provide investors with short-duration and high yield loan portfolios. Prime Meridian Managing Director Peter Lowden claimed:
"There are only a handful of platforms in the real estate marketplace lending space that have shown the ability to source and identify some of the strongest borrowers and best projects, which is the key to consistent results. Sharestates' track record for delivering value-added returns makes it an attractive platform for purchasing loans."
These new partnerships follow on from a partnership that Sharestates forged with Ranger Direct Lending last May. The Ranger Direct Lending Fund – a pooled investment vehicle dedicated to direct lending investments – committed to deploying $30m in fractional and whole loans through the Sharestates platform. Yet another partnership was forged by Sharestates with a large East Coast private equity firm last February. The unnamed institutional investor agreed upon the purchase – on a forward flow basis – of Sharestates loans, with a 2016 target of $60 million.