Structuring a Successful Consumer Loan Portfolio
Successful investing begins with a disciplined investment process.
- We work with best-in-class loan originators, such as Prosper and Lendingclub. We understand their credit processes, operating standards, loan terms, types of loans issued and contractual structures. We do macro-economic research and we survey the credit environment.
- Our proprietary MarkitLend loan selection software is the core of our investment process. We have developed, refined and employed this tool for the past decade. The software enables use to review of profiles and borrower applications provided on the platforms and purchase loans 24 hours a day. Our loan selection process takes into account more than 70 parameters.
- We diversify the portfolio across borrowers, states, term to maturity and credit quality categories. We make relative value comparisons to choose loans we think offer the best value in terms of risk and reward.
- We continually adjust our loan loss reserve provisions to take into account the current economic climate and the impact of default rates on the portfolio. Over the last several years our loan loss provisioning as tended to mirror the actual development loan losses. The result is a low volatility, steady return on investment.
- Our proprietary software, developed, tested and refined over a decade, evaluates and selects loans 24 hours a day, 365 days per year. This is what enables MarkitLend to produce superior risk adjust returns.
Our Investment Process
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Find out about our US Consumer Finance Fund