GREAT NECK, N.Y., April 11, 2016 /PRNewswire/ -- Sharestates announced today that it has surpassed $300 million in total funds set aside for the purchase of loans made on its marketplace lending platform. This latest milestone results from partnerships signed during the past few weeks with investment firms Colony American Finance and Prime Meridian Capital Management.
The new partnerships come on the heels of a similar partnership Sharestates forged with Ranger Direct Lending, last May, and an additional partnership with a large East Coast private equity firm in February. The partnerships demonstrate recognition among institutional investors regarding Sharestates' value as a platform, the expertise of its founding team and its track record to date. With an average net annual yield of 10.4 percent, Sharestates has originated more than $102 million in loans and returned more than $23 million to its investors (against zero loss of principal) since it launched in early 2015.
Sharestates' founding team represents decades of collective experience in numerous aspects of real estate, including investments, speculation, title insurance, management, and loan syndication. As a result, the company is uniquely positioned to leverage an expansive network of real estate professionals in order to identify, source and maintain an active pipeline of the most promising loan applications.
"Institutions, like Colony American Finance and Prime Meridian – as well as accredited individual investors – are looking for partners in this space that have large pools of qualified borrowers to select from and track records that reflect superior underwriting," said Allen Shayanfekr, Sharestates' founder and chief executive officer. "These loan purchases will enable us to offer frequent opportunities for investors to diversify, while also giving individuals the increased confidence that comes with investing in the same deals as accomplished institutional firms."
Known for an approach that focuses on responsiveness to specific cycle opportunities, Colony American Finance seeks attractive risk-adjusted returns through a balance of debt and equity strategies that emphasize both yield and capital appreciation. Prime Meridian Capital Management is an investment management firm specializing in online peer-to-peer lending strategies with a focus on yield, duration, and credit quality. Both firms selected Sharestates from a field that now includes more than 100 real estate marketplace-lending platforms.
"We are thrilled to expand our presence in the marketplace lending space by partnering with a market leader like Sharestates, which has demonstrated expertise in both deal-sourcing and underwriting," said Ryan McBride, COO of Colony American Finance.
Prime Meridian Managing Director Peter Lowden added: "There are only a handful of platforms in the real estate marketplace lending space that have shown the ability to source and identify some of the strongest borrowers and best projects, which is the key to consistent results. Sharestates' track record for delivering value-added returns makes it an attractive platform for purchasing loans."
Sharestates is a real estate investment marketplace that allows individual and institutional investors to participate in rigorously vetted debt and equity offerings. All of the offerings on Sharestates' platform have passed through a 34-point underwriting process.
To compete in the market, Sharestates leverages proprietary technology and a close partnership with The Atlantis Organization, which – founded by Radni Davoodi and Raymond Y. Davoodi in 2004 – has become one of the nation's leading title agencies. This partnership provides Sharestates with access to and credibility among an expansive network of real estate developers, investors and lenders, cultivated over the course of more than $4 billion in transactions that Atlantis has managed over the years.
Since Sharestates.com launched in 2015, it has closed more than $102 million in origination, across dozens of loans, with zero loss of principal and net annualized returns ranging from 10 to 20 percent. For more information, please visit http://www.sharestates.com.
About Prime Meridian Capital Management
Prime Meridian Capital Management is an investment management firm specializing in online/Peer-to-Peer (P2P) Marketplace Lending strategies. Our funds provide investors with access to short-duration, high yield loan portfolios by taking advantage of the efficiencies in the burgeoning P2P lending space. Loans include consumer debt consolidation, small business financing, real estate, auto financing, and more. We select loans using a risk-based pricing approach that focuses on yield, duration, and credit quality with the objective of achieving consistent returns that have low volatility and low correlation to other asset classes. The construction of our funds is designed to create a diversified loan portfolio in each of P2P/Marketplace Lending verticals: consumer loans (Prime Meridian Income Fund), small business loans (Prime Meridian Small Business Lending Fund), leveraged consumer loans (Poise Lending Fund), and real estate loans (Prime Meridian Real Estate Lending Fund). For more information, contact 925-587-5075 or visit www.pmifunds.com.
About Colony American Finance
Colony American Finance (www.colonyamericanfinance.com) provides financing solutions to residential real estate investors. The company's products include portfolio and single asset term loans for stabilized rental properties as well as short term credit lines for acquisitions. Colony American Finance was founded in 2014 and finances single family, townhome, condo and small multifamily properties for customers nationwide.
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