W&F October 2017

www.wealthandfinance-news.com 22 Wealth & Finance International - October 2017 “P2P lending gained popularity for two main reasons, notably the tightness of consumer credit from traditional sources; and also, a low interest rate environment where lenders and investors look for alternative sources of yield. “For the other borrowers, this leaves only secured borrowing and credit cards. Since investors and lenders want uncorrelated and higher yields than traditional corporate and municipal bonds offer, they have stepped in to fill the role banks vacated. For a borrower, P2P lending is streamlined, as funds become available in a matter of days and sometimes hours. Douglas then underlines that the Fund is presently accepting subscriptions from a limited number of sophisticated investors. All interest classes are subject to both a monthly management fee and a quarterly performance allocation. “The performance allocation is equal to a percentage, depending on interest class, of each investor’s rateable share of the Fund’s profits, if any, for the quarter, but only to the extent that such profits exceed such investor’s high water mark. Below is a breakdown of each interest class and their respective conditions. “Investors can generally make withdrawals of capital before close of business on the last day of each calendar quarter. The withdrawing investor must notify the general partner at least 90 days in advance of the withdrawal and the amount must have been invested in the Fund for at least six months. If the withdrawal amount has been invested in the Fund for less than three years, the investor must pay the appropriate penalty fee. “However, when subscribing to the Fund, investors may elect to receive automatic quarterly distributions up to 1.25% (5% annually) of their Capital Account balance. The general partner can also designate a Fund investment it believes either lacks a readily assessable market value or should be held until the resolution of a special event or circumstances as a ‘side pocket investment.” Ultimately, what makes the company stand out from its competitors is that it offers investments that no one else in the industry can offer, and its internal culture is mirrored in the way staff treat clients, meaning employees communicate and listen to all ideas and all people, as Douglas maintains that nothing should be overlooked. All of this bodes well for the company in the future, as Douglas looks to expand the firm, as he notes that the wider industry will see an expansion in alternate investments. “Ultimately, what makes the company stand out from its competitors is that it offers investments that no one else in the industry can offer”