Marketplace lending and investment firm Direct Lending Investments celebrated its third birthday in style by passing a significant investing milestone.
The company, which launched on Nov. 1, 2012, announced it has more than $350 million in assets under management.
Direct Lending Investments has been purchasing short-term business loans from non-bank lenders since its inception at a higher frequency than any other firm, a strategy which has served the company well, its Founder and President said.
“These milestones are a great achievement for the firm, and demonstrate that our investment strategies and financial advice are working,” Brendan Ross confirmed. “The growth of our firm underscores the value direct lending brings borrowers and lenders.”
The low frequency of small business lending by traditional financial institutions has opened the door for alternative lenders like the ones Direct lending Investments participates with. The typical loan size ranges between $10,000 and $500,000 while many term lengths are less than one year. Average returns are in the double digits without leverage, the company said in a release.
Investing in peer-to-peer products can help investors prepare for coming rate hikes, Mr. Ross said.
“Right now, private credit is the only place where anyone can find double-digit returns without volatility. Our growth is a testament to the value of private credit as a fixed income investment that not only has the ability to improve when interest rates rise, but lacks volatility and duration risk.”