“We are happy to add scale to our initial securitization and feel that this follow-on securitization is extremely positive for our investors,” said Jon Barlow
NEW YORK, NEW YORK (PRWEB) May 13, 2014
Eaglewood Capital Management (“Eaglewood”), a leading investment management firm specializing in investing in online lending strategies, announced today that it has completed a $47 million increase to the $53 million securitization it closed in the fall of 2013, which marked the first ever securitization of peer-to-peer (P2P) consumer loans. The $100 million combined transaction securitized unsecured consumer loans originated through the LendingClub Corporation and purchased by Eaglewood’s inaugural fund, Eaglewood Income Fund I, LP.
“We are happy to add scale to our initial securitization and feel that this follow-on securitization is extremely positive for our investors,” said Jon Barlow, Eaglewood’s Chief Executive Officer and Chief Investment Officer. “This transaction frees up capital on our warehouse line of credit and further mitigates interest rate risk, while matching a greater portion of our assets and liabilities. Our first transaction was momentous for the industry as it opened doors to the capital markets and we are pleased that other online lending issuers have recently closed securitizations. We are excited about the trajectory for this industry and expect that it will continue to grow.”
Waterford Capital and Bonwick Capital Partners served as the structuring and placement agents to execute the transaction. David Piotrowski, the lead banker from Waterford Capital noted, “We are pleased to see the acceptance of online platform originated loans into the securitization market. Eaglewood continues to the lead this segment of the industry and their access to a diversified source of capital sets them apart from other investment managers”. Ray Gatten, managing director at Bonwick Capital added, “Investor demand continues to increase for this asset class as collateral performance and the strength of deal participants increases.”
Loan characteristics of the securitized portfolio, which Eaglewood assembled using its proprietary loan selection algorithm and software, include a weighted average borrower FICO score of over 700, weighted average borrower income in excess of $90,000, and a weighted average interest rate of 11-12%. All of the securitized loans are 36-month term loans.
About Eaglewood Capital Management
Eaglewood Capital Management, founded in 2011, is a New York-based investment management firm and an SEC-registered investment adviser specializing in online lending strategies. The firm focuses on strategies that offer a compelling combination of yield, credit quality and duration while minimizing volatility of returns and correlation to other asset classes. Eaglewood’s investor base includes family offices, fund of funds, mutual funds, foundations, and commercial banks. On April 30, 2014, Marshall Wace, a London-based alternative asset management firm with over $18 billion of assets under management, acquired a majority stake in Eaglewood Capital Management.
About Waterford Capital
Waterford Capital, Inc. is a Dallas-based investment banking firm specializing in arranging asset securitizations and other structured finance transactions for specialty finance companies and investment managers across multiple asset classes. Product offerings include including revolving warehouse credit facilities, term asset-backed securities, subordinated debt, and whole loan sales. In addition, Waterford Capital offers customized asset management programs for families, foundations and endowments as well as merger and acquisition advisory in the Technology industry.
About Bonwick Capital Partners
Bonwick Capital Partners is a full-service broker dealer dedicated to providing top tier service to institutional clients across sales and trading, investment banking and corporate advisory. Clients rely upon Bonwick’s deep industry knowledge to assist them through the investment process, sourcing deals, conducting due diligence, capital raises and business solutions. Bonwick has a diverse global client base which spans five continents and these relationships allow Bonwick to address a wide range of client needs across different time zones and cultures. Bonwick is headquartered in New York City with offices in Chicago, Illinois and Los Angeles, California.