Orchard unveils new SEC-registered broker-dealer network

By Ryan Weeks on Tuesday 12 September 2017

Alternative Lending

Fintech platform Orchard launches new solution for tying together originators and investors.

Orchard Platform has rolled out a new Deals network as part of a broader platform revamp. The Deals feature is a global network on which institutional investors can connect with, evaluate and work (“move forward”) with a large number of loan originators.

The new feature is operated Orchard Platform Markets, LLC, a wholly-owned subsidiary of Orchard. This entity is registered with the SEC as a broker-dealer, formalising its role as an introducer of capital.

Whereas the Orchard of old plugged institutional investors into whole loans originated by online lenders, the new Deals network will encompass a broader range of investment opportunities.

“Whether a transaction involves the sale of a pool of loans, negotiating a credit facility, or arranging and managing forward flow agreements, our platform reduces costs and operational friction for our clients,” said Bill Ullman, chief commercial officer of Orchard Platform and CEO of Orchard Platform Markets, LLC.

Orchard received its broker-dealer license about 9 months ago, but its deal-making activities have been somewhat piecemeal since then. The Deals network is designed to change that.

Other new facets of the revamped Orchard Platform include a new capital management tool for investors, news and insight feeds, advanced analytics functionality and data services designed to help originators improve the quality of their disclosure.

In a press release announcing its new platform launch, Orchard included a quote from Parris Sanz, CEO of small business lending firm CAN Capital, which highlighted Orchard’s role as a facilitator of funding for the platform.

“Orchard helped us find the right institutional partner to fund our future as we move forward with the next phase of our company's growth and reengage with small businesses across America,” said Sanz.

CAN Capital paused lending in November of last year amidst concerns over the quality of the loans it was originating, only to resume in July of this year after a recapitalisation by New York-based asset manager Varadero Capital.

“Orchard sits in a unique position within the industry and is able to understand the needs of both investors and lenders,” said Matt Burton (pictured), CEO of Orchard Platform. “The entire Orchard team is excited by the response we’ve received from our clients on either side of the platform around our latest updates and we’re looking forward to continuing to build the solutions they need.”

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