ZURICH, April 26, 2018 /PRNewswire/ --
The investment reflects the demand for expert risk management, platform diversification and simple access through traditional capital markets.
Lendity AG, a provider of investment solutions for alternative lending and private debt, announced today the launch of a diversified bond to invest in loans from small and medium-sized enterprises as well as consumer loans originated through Swiss marketplace and peer-to-peer lenders. Bank Julius Baer (VTX: BAER), a Swiss publicly listed bank with CHF 388.4 billion of assets under management, subscribed the whole issuance.
Lendity monitors the platforms' underwriting criteria to ensure loan quality and to proactively adjust the portfolio. "Managing risk is essential when investing in private debt. We focus on managing credit, platform, servicing, and legal risk," said Rafael Karamanian, partner at Lendity. In addition, Lendity secures meaningful allocation from platforms and negotiates attractive terms which are directly passed to bond holders.
To further reduce risk, the Lendity bond is highly diversified by loan type, grade and originating platform. "This high diversification allows a significant reduction of idiosyncratic risk," said Armen Karamanian, partner at Lendity. The Lendity bond represents the underlying loan portfolio in its entirety with no additional counterparty risk.
On May 9th, Lendity will be hosting the 2018 Alternative Lending Conference at the Swiss SIX Exchange, the largest Alternative Lending event in continental Europe. More info: http://www.altlendingconference.com
Lendity is a Swiss Fintech that provides institutional-grade investment solutions to access marketplace and private debt opportunities across the globe. Lendity monitors platforms and dynamically invests in loans from those with the most attractive risk reward profile, obtaining an optimum diversification of both loans and platforms. Through its infrastructure, Lendity creates streamlined structures for global transactions and simplifies access through the traditional capital market.
About Bank Julius Baer
Bank Julius Baer is the leading Swiss private banking group, with a focus on servicing and advising sophisticated private clients and a premium brand in global wealth management. At the end of 2017, assets under management amounted to CHF 388 billion. Bank Julius Baer & Co. Ltd. is the principal operating company of Julius Baer Group Ltd., whose shares are listed on the SIX Swiss Exchange (symbol: BAER) and is amongst the 20 largest Swiss stocks.
SOURCE Lendity AG