Direct Lending Investments LLC, a marketplace lending and private investment firm that makes short-term, small business loans available in fund form to accredited investors looking for high income and growth without interest rate risk, announced on Wednesday it has surpassed $350 million dollars in assets under management. The news marks the three-year anniversary of the company, which was launched on November 1, 2012, by president and portfolio manager, Brendan Ross.
“These milestones are a great achievement for the firm, and demonstrate that our investment strategies and financial advice are working. The growth of our firm underscores the value direct lending brings borrowers and lenders.”
Typical small business loans range in size from $10,000 to $500,000 and are often for terms of one year or less. The borrowers are surprisingly strong credits, and the 20-year decline in bank lending to small businesses has made these borrowers available to non-bank lenders, with whom Direct Lending Investments partners. Returns from portfolios of these types of small business loans typically generate double-digit returns, without leverage.
“With rising interest rates on the horizon, investors are looking for ways to avoid sensitivity to interest rates. For savvy investors, one of the best ways to do that is the modern and innovative world of peer-to-peer or direct lending. Right now, private credit is the only place where anyone can find double-digit returns without volatility. Our growth is a testament to the value of private credit as a fixed income investment that not only has the ability to improve when interest rates rise, but lacks volatility and duration risk.”