NEW YORK, Oct. 1, 2013 /PRNewswire/ -- Eaglewood Capital Management ("Eaglewood"), a leading investment management firm specializing in investing in online lending strategies, announced today that it has completed the first ever securitization of peer-to-peer (P2P) consumer loans. The $53 million transaction, representing approximately half of the assets under management in the firm's flagship fund, Eaglewood Income Fund I, LP, securitized unsecured consumer loans originated through the LendingClub Corporation.
"We believe that this transaction, the first of its kind in the market for P2P consumer loans, is a major milestone for Eaglewood and for the P2P industry as a whole," said Jon Barlow, Eaglewood's Chief Executive Officer and Chief Investment Officer. "We expect our investors to benefit from the transaction in several ways as it diversifies our borrowing sources, matches our liabilities with our assets, and fixes the interest rate on a material portion of our debt. We also think the transaction will lower our borrowing costs and generally increase lender confidence in our fund. As investor interest in online lending strategies continues to grow, we believe that institutional demand for similar securitizations that are properly structured will increase going forward."
Loan characteristics of the securitized portfolio, which Eaglewood assembled using its proprietary loan selection algorithm and software, include a weighted average borrower FICO score of 700+, weighted average borrower income north of $90,000, and a weighted average interest rate of 12-14%. All of the securitized loans are 36-month term loans.
About Eaglewood Capital Management
Eaglewood is a New York-based investment management firm and an SEC-registered investment adviser specializing in online lending strategies. The firm focuses on strategies that offer a compelling combination of yield, credit quality and duration while minimizing volatility of returns and correlation to other asset classes. The firm's regulatory assets under management currently stand at north of $130 million. Eaglewood's investor base includes family offices, fund of funds, mutual funds, foundations, and commercial banks.
Eaglewood is independent of, and is not affiliated with, the LendingClub Corporation.
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SOURCE Eaglewood Capital Management