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.”