CrowdOut Capital, a technology-enabled online marketplace funding corporate loans for middle market companies, has funded more than $112 million in loans in less than two years. Accredited investors choose from the company’s vetted loan offerings on a deal-by-deal basis.
“Our platform allows individuals and institutions to invest directly into loans of middle market companies, which represent the backbone of our economy,” said Alexander Schoenbaum, CEO of CrowdOut Capital. “These one to five-year loans help take these companies to the next level. We are just beginning to hit our stride and are filling an unmet need of borrowers and investors alike. Our transactions allow companies to avoid much of the long duration and high costs of traditional credit facilities, while providing our investors an average net return of over 11 percent.”
CrowdOut funds loans as small as $3 million to companies with annual revenues between $10 – $500 million to fuel growth. Its loans have reached borrowers from a variety of market sectors. CrowdOut recently funded Schweizer RSG’s carve-out
of Lockheed Martin’s S-300 and S-333 helicopter manufacturing operations. CrowdOut also provided project finance to Lloyd
Electric, a disabled veteran small business, to help rebuild the power grid in Puerto Rico after Hurricane Maria ravaged the island.
CrowdOut Capital’s recent highlights include:
- Quickly surpassing 100 investors on the platform;
- Investors earned 12.1 per cent net return after fees on investments in Q1, making it the strongest quarter on record;
- The speed of CrowdOut’s sell-through on loans sold via its online marketplace has increased dramatically. A recent loan was fully subscribed in 25 hours.
· CrowdOut’s underwriting process includes proprietary screening and data analytics. Staff with years of experience with traditional lenders conduct detailed analyses and stress tests, and CrowdOut collaborates with each borrower to develop an optimal debt structure for both sides of the transaction including loan covenants that mitigate default risk and monitoring to ensure spending does not outpace cashflow.
The investor network is alerted when new loan opportunities arise.