Author Topic: Direct Lending Investments  (Read 2989 times)

investny

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Direct Lending Investments
« on: June 15, 2016, 03:33:35 AM »
Have you seen their presentation?
What are your thoughts?
LC vs DLI?

Fred93

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Re: Direct Lending Investments
« Reply #1 on: June 16, 2016, 07:04:25 PM »
Unlike a portfolio of loans at Prosper or LendingClub, you can't look inside DL.  You can't see whether they have chosen high risk loans or low risk loans.  You can't see whether their loans are doing well or not.

DL does not seem to mark down their portfolio for impairments or interest rate changes.  This leaves the possibility of a severe markdown in the future, when they may be forced to suddenly realize losses.

DL buys loans from very small originators.  These small originators don't share information about their loans as Prosper and Lending Club do.  We know nothing about their underwriting.  We know nothing about the ongoing quality of their loans.

With Prosper and Lending Club, you have incredible transparency, and can see what you're investing in, and how it is doing.  With DL it seems to me that you have none of these things.


JustTryinToMakeABuck

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Re: Direct Lending Investments
« Reply #2 on: August 20, 2016, 01:36:58 PM »
Unlike a portfolio of loans at Prosper or LendingClub, you can't look inside DL.  You can't see whether they have chosen high risk loans or low risk loans.  You can't see whether their loans are doing well or not.

I'm an investor in Direct Lending, and each newsletter includes the following:
Quote
Would you like to tour the Fund's live account on the Biz2Credit and other platforms? See the Fund's actual loans as they reside in the Fundís account, including underwriting information, daily money flows, bank account reconciliation, and more. Contact Brendan to schedule a demo.

The Direct Lending Income Fund is unique in the great level of transparency it offers prospective investors.

I haven't taken the fund up on this offer, so I can't provide any additional information, but it suggests that your assessment of the fund's level of transparency may be incorrect.

hrux

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Re: Direct Lending Investments
« Reply #3 on: September 10, 2016, 09:32:40 AM »
Fred is mistaken regarding DL.  Brendan Ross fund is transparent and more importantly a much better risk-return profile versus investing in a retail product of unsecured consumer debt.   I used to be an avid investor of LC, Prosper, Funding Circle and have liquidated most of my assets with them.  Really like the direct lending space but prefer collateral. 

rawraw

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Re: Direct Lending Investments
« Reply #4 on: September 11, 2016, 12:26:42 PM »
Fred is mistaken regarding DL.  Brendan Ross fund is transparent and more importantly a much better risk-return profile versus investing in a retail product of unsecured consumer debt.   I used to be an avid investor of LC, Prosper, Funding Circle and have liquidated most of my assets with them.  Really like the direct lending space but prefer collateral.
Ever wonder why some loans are secured and have higher rates than LC?  The fact they are secured doesn't increase their risk-return profile. . .

SeanMCA

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Re: Direct Lending Investments
« Reply #5 on: September 11, 2016, 11:55:38 PM »
Fred is mistaken regarding DL.  Brendan Ross fund is transparent and more importantly a much better risk-return profile versus investing in a retail product of unsecured consumer debt.   I used to be an avid investor of LC, Prosper, Funding Circle and have liquidated most of my assets with them.  Really like the direct lending space but prefer collateral.

My understanding was that his fund invested in unsecured business loans and merchant cash advances. They're even riskier than consumer loans but with much higher returns to accommodate for that risk.
I'm a merchant cash advance veteran exploring the p2p lending waters.

RyanL

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Re: Direct Lending Investments
« Reply #6 on: September 16, 2016, 10:46:00 AM »
Brendan was the latest guest on the Lend Academy podcast if you are looking to learn more about DLI: http://www.lendacademy.com/podcast-74-brendan-ross-direct-lending-investments/