Tuesday, 9 February 2016
Last updated 20 hours ago
Sep 5 2013 | 11:47am ET
Hedge fund Petra Partners is gearing up for the launch of a peer-to-peer lending hedge fund.
The new credit-focused fund will debut on Oct. 1, HedgeCo.net reports. The new fund aims to offer low volatility and low standard deviation, producing annual returns of 9% to 12%.
"P2P lending has been around for only for a few years (the first P2P business, Zopa, was founded in the U.K. in 2005 and, since then, many others have entered the space) but, in that time, platforms in the U.S. and Europe have originated more than $3 billion in P2P loans,” Joshua Rand, Petra's chief operating officer, said. “Loan origination is currently growing at an average rate of approximately 8% to 10% per month, signifying a market—an asset class, actually—still in its nascent stages and with tremendous upside potential.”
“Moreover, while the sheer scale and growth prospects for this niche are impressive, what makes this asset class extremely compelling as an investment opportunity – and the primary reason for which we are eager to raise a fund – is the consistent performance of the loans and the diligent manner in which they are originated.”