Families of wealth and institutional investors have a new guide to the peer-to-peer finance sector, thanks to the family office of Yves Saint Laurent co-founder Pierre Bergé, Shepherd Capital, and Paris-based alternative asset manager Eiffel Investment. Together, the two firms launched Eiffel eCapital, an asset management firm providing access to 12 P2P platforms in the U.S. and the U.K., according to a story from Campden FB.
On average, these investments return 5% to 10% on loans of two to five years, notes the article. The new firm’s team has been part of the lending industry since 2009, and Eiffel eCapital’s assets include consumer loans, small business loans, invoice discounting and trade finance.
Eiffel eCapital will be seeded with €50 million of proprietary capital, notes Lend Academy, which adds,
[Eiffel eCapital] will focus on loans issued by established platforms – they like at least a 4-year track record before considering an investment. They will target 7% net returns to investors after a management fee of 100-125 basis points, less than 1% volatility, and will offer quarterly liquidity. Unlike many in the market they do not charge performance fees.
Yves Saint Laurent cofounder Pierre Bergé, discussing the P2P lending sector, said,
I was immediately convinced that online lending represented an attractive investment opportunity and I am fully satisfied with our returns in this market.
The UK P2P sector could exceed £4.4 billion by the end of 2015, according to research from from innovation group Nesta and Cambridge University. Last year, the UK P2P sector generated £1.74 billion ($2.73 billion) of funding.
Eiffel eCapital founder Etienne Boillot, noted, “The online lending industry’s explosive growth represents a fundamental shift.” According to Boillot in Campden FB, “Eiffel eCapital will return 2% to 3% on principal investment per month, adding that historical performance displayed “extremely low volatility” and almost no correlation to other asset classes.”
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