Niche fund chases marketplace lending assets
Marketplace lending platforms are drawing allies to their cause, with one niche fund manager setting out to specialise as an investor in this class.Global Credit Investments, a newly formed manager in Sydney, describes itself as "an Australian fixed-income fund manager investing in loans made through the global marketplace lending sector."It is investing in loans on US and Australian based platforms, with loans from the latter intended to spice returns.GCI said its Diversified Income Fund "aims to comprise the best loans from the best of these platforms. "It's calibrated for high income and low volatility — perfect for the fixed-income component of a well-balanced portfolio. At the same time, the risk is shared over hundreds of loans," GCI said.An investment pack from GCI highlights one aim as chasing a "higher return - around 20 per cent to 30 per cent of the fund will target low double-digit returns, seeking to increase the blended return of the fund."It said: "these higher yields will come from small business finance, in addition to direct engagement with consumer marketplace loan providers in Australia as they mature."One founder of GCI is Steven Sher, a Goldman Sachs alumnus. His Linkedin profile says he was head of Northern Europe and Australian private equity for many years until recently.The other founder is Gavin Solsky, a serial entrepreneur who also sits on the board of marketplace lender OnDeck Australia.The investment director at GCI is Jacob Rosenberg, who worked for JP Morgan Chase, "where he was responsible for the valuation and management of whole loan consumer credit transactions."