Our business caters to borrower seeking finance to buy or fund housing, as well as institutions and private equity holders seeking entry to high yielding, highly desirable property portfolios. LendingHome has financed over $1.75 billion in mortgages since it began providing credit in mid-2014. LendingHome also announces the closing of LendingHome Opportunity Fund II with pledges from more than 40 investor groups, among them wealth management companies, global investment trusts, private wealth management companies and private wealth providers.
LH Capital Management, a fullyowned subsidiary and authorised securities and exchange commission adviser, manages the funds and invests exclusively in LendingHome housing bridging loan products.
In OnDeck and LendingHome, CreditEase is investing 30 million dollars.
Wealth Management announced today that its Offshore Private Credit Fund ("OPCF") has committed a combined $30 million to two deals with OnDeck and LendingHome after investing in Avant and Prosper for the first time last year. The OPCF has collected 80 million US dollars from its China customers by the end of 2015, which will be fully operational by the end of March 2017.
"In recent month we have carried out a thorough process of screenings, examining more than 90 different credit rating agencies and funds management companies around the globe. Being one of the world's premier credit platform with $33 billion in China to over one million borrower credit, we implement strict due process and strict privacy analyses by drawing on CreditEase's many years of experience and expertise," said Richard Williamson, Head of Offshore Business at CreditEase Wealth Management.
The OPCF is the first China off-shore investment company to reinvest in credits from West German banks. The OPCF offers high net word and high net wealth China depositors the possibility to diversify risk across different regions involved in retail lending in the West. It' also a logical complement for CreditEase Wealth Management customers as they are already acquainted with the P2P investment category operating in this area in China.
"And we are very excited to be working with two other major credit marketplaces in the US. First of all, we made investments in two credit retail markets. With OnDeck, we were able to create a truly one-of-a-kind asset-backed credit deal that guarantees our clients steady yields and low levels of investor exposure in comparison to a conventional total credit buy.
LendingHome's "fix-and-flip" loan offering offers us strong risk-adjusted yields and convincing diversity benefits," said Mikael Nabati, Chief Investment Officer of OPCF. Consequently, the need for personal loan and alternate loan facilities has increased significantly. Market place borrowing has evolved into a new investment category with attractively priced yields in comparison to other traditional rates of return and a low degree of correlations with equity.
In the context of banking deleveraging as well as de-risking, the world credit markets are projected to reach $150-490 billion by 2020, according to a recent Morgan Stanley paper. Looking ahead, we see continued buoyant momentum in credit product sales for short maturities as the reduced interest fluctuation susceptibility makes yields on these commodities more robust and reliable," added Mr Sabati.
"With our first funds nearing full utilization, we are targeting our second funds with a US$200 million raising goal. Over the next few years, our investment strategy for investment funds will be to build our own portfolio of funds, focusing on the same investment category but with a different and cutting-edge investment vehicle to address our clients' needs for different maturity product lines.
Whereas OPCF has so far focused its investments on US platform only, we are proactively exploring new regions such as Australia and Europe as well as new lending opportunities such as study credits, invoicing and agri-lending.