PeerStreet, a debt-based real estate investing platform, has announced the launch of a new fund that seeks to expand the ways investors can access real estate investments via its platform, according to a note from the company. The Peer Street Credit Opportunity, LP is said to offer more options to diversify, expand, and customize real estate debt portfolios. Peer Street Credit Opportunity is available only to accredited investors and qualified clients.
PeerStreet says the new fund will allow investors to take advantage of changing market conditions and gain exposure to opportunities that weren’t previously available on PeerStreet, mentioning distressed debt, warehouse financing, and subordinate investments.
Brew Johnson, co-founder and CEO of PeerStreet, says the fund is a logical next step in the evolution of its marketplace:
“Just like investors on Robinhood or TD Ameritrade can choose whether to buy individual stocks, or invest in ETFs and mutual funds, we are providing similar options to our real estate investors. Our goal is to continually expand our products to serve our customers whether they are individuals, family offices, RIAs, or institutions.”
PeerStreet states that it “pioneered fractional investing in real estate loans” making the process similar to investing in stocks.
Currently, PeerStreet allows individual investors to create their own debt-based portfolio.
Brett Crosby, COO and co-founder of PeerStreet, added:
“PeerStreet investors are already, in essence, creating their own curated funds either manually or through our automated investing features. But some investors have made it clear that they would prefer to deploy larger amounts of capital at once into different strategies. We are giving them an easy way to do that. This strategy allows us to match investors to shifting opportunities that are made available through our nationwide network of lenders.”
PeerStreet’s loans are sourced from private lenders throughout the United States. As of February 2020, PeerStreet reports having facilitated over $3.5 billion in real estate loans.