While many take part of the summer off, it appears PeerStreet stayed in the office, their latest numbers show.
The real estate debt marketplace lender enjoyed a profitable summer, highlighted by a $6.56 million loan on a Southern California property they believe is the largest real estate marketplace loan so far.
That is one of 66 properties funded on the platform, which has generated a 7.7 percent average net yield to investors off more than $32 million in total investments.
PeerStreet’s CEO and co-founder says the company’s growth is higher than the average of those operating at the same stage in this space.
“Our goal is to provide investors the best risk-adjusted returns possible and the fact that we are able to do so, while growing at a faster pace than other marketplace lending platforms at similar stages in their life cycle, is exciting,” Brew Johnson said.
Mr. Johnson’s co-founder Brett Crosby, who is also PeerStreet’s COO, explains the reasons for that rapid growth.
“Our growth is the result of several key factors, including competitive yields, an asset class that is backed by real estate, a highly scalable loan acquisition model, and a technology platform that makes investing simple and intuitive. And of course, timing is an important factor; investors are generally much more accepting of disruptive platforms in their search to find relatively safe returns on cash.”
PeerStreet also beefed up their management team, hiring Sara Priola as General Counsel, Marc Heenan as head of Commercial Originations and Asset Management, Brendan as as Head of Product Management, and Brian Channell as Head of User Experience. Mr. Heenan comes from a First Vice Presidency in Commercial Real Estate at OneWest Bank. Mr. Kao includes terms at Amazon and Zest Finance on his resume, while Mr. Channell spent a decade at Yahoo.
PeerStreet kicked off 2015 by announcing a successful $6.1 million seed round, with investors including:
- Felicis Ventures, early stage VC, led by Wesley Chan
- Guggenheim Partners, led by Rob Brennan and Anand Gajjar
- Dr. Michael Burry, Founder of Scion Capital
- Chris Warmuth, President of City National Bank
- Adam Nash, President and CEO of Wealthfront
- Doug Holte, President of Irvine Company Office Properties
Bankless Times will be publishing an exclusive interview with Mr. Johnson in the next few weeks.