By Daniel Lanyon on Friday 11 November 2016
The US-based direct lending marketplace has big plans for 2017 and fresh capital to match.
The Blackmoon Financial Group has secured $2.5m in its latest round of equity funding from a selection of institutional investors.
The firm's online marketplace enables institutional investors to directly invest in loans issued by balance sheet lenders. It makes money by charging investors for access to these which it says is a “unique” proposition.
According to its own data, monthly transaction volume has grown by a multiple of 2.5 since June 2016 and exceeded $5m in September 2016.
Blackmoon says it will use the new funds for “further development of its technological platform” and for further expanding its presence in the U.S. market. It expects this will be a key growth area for the firm in the next 18 months.
The company also plans to provide a marketplace solution for banks in early 2017 and apply for a broker/dealer license in U.S. in the second half of 2017.
“Blackmoon enables institutional investors to directly invest in newly originated loans issued by balance-sheet lenders in a scalable and a transparent way. We estimate the global market for this hybrid service is in the hundreds of billions of dollars,” Oleg Seydak, founder and CEO of Blackmoon, said.
“Lending is one of the universal structures of the modern financial system. And unlike other players, we’re not trying to replace banks; we want to give them and other balance-sheet lenders a unique tool to improve efficiency and risk management," he added.
Currently, Blackmoon works with lending institutions in the United States, Russia, Finland, Latvia, Estonia, Poland, the Czech Republic, Slovakia and Georgia.
Those taking part in the equity funding round included Target Global, A&NN Group, Flint Capital, and several private investors.
"We see a great potential in the business model Blackmoon has chosen,” Mikhail Lobanov, a partner at Target Global, added. “The proposed solution can freely scale both geographically and through the product segments, providing new opportunities for lending institutions and owners of capital.
Being familiar with alternative lending through our investments in leading P2P platforms, we see Blackmoon as a perfect solution for balance sheet lenders who are willing to expand their offering and diversify funding.”
Blackmoon was founded in 2015 by Seydak and Ilya Perekopsky. The implied valuation of the company and the structure of the investment have not been disclosed in the funding round.