Alternative Investments Performance
- Lending Club has declined significantly due to a highly aggressive liquidation in 2016.
- LexShares return streams are extremely lumpy. They include periods with little or no money coming in and periods with significant inflows of cash as cases get settled.
Alternative Asset Allocation
- I have been winding down Lending Club notes since 2015.
- The shift to a greater focus on litigation finance is a culmination of research in the third-party litigation finance industry.
Direct Lending Income Fund
DLI Fund is a newly organized, diversified, closed-end investment company with a solid high return, low risk, and high liquidity. It seeks a high level of current income through investments in loans to small and medium sized businesses and non-bank lenders by investing in short-term loans, lines of credit, receivables and other debt obligations.
- Podcast 26: Brendan Ross of Direct Lending Investments
- Podcast 74: Brendan Ross of Direct Lending Investments
iFunding iFunding is one of the earlier entrants into the real estate crowdfunding sector that leverages an online social platform allowing accredited investors to make investments in prime real estate directly. iFunding specializes in both commercial and residential real estate investment opportunities in debt and equity deals.
YieldStreet is an online marketplace for investing in alternative asset-based loans. The platform seeks investment opportunities that provide investors with low correlation to the broader stock market. Their popular offerings include legal funding, commercial real estate, and marine finance with the 12-48 months time horizon and 8-13% target annual yields.
- Podcast 99: Milind Mehere of YieldStreet
- ILAB 59 – YieldStreet – The Future of Non-Correlated Asset Investing with CEO Milind Mehere
- YieldStreet Connects Accredited Investors with Asset-Based Investments
LexShares is an online marketplace that connects investors with plaintiffs. This platform is specialized in small to midsize meritorious commercial cases at all stages of litigation. The LexShares team maintains a strong track record in commercial cases with a success rate of little over 90%. The platform posted 32 cases as of April 2017 (102 cases for the underwriting group), and 7 cases reached a finality. The median return so far with 7 cases (6 wins / 1 loss) is 88% net of all fees including losses.
LexShares has been offering 2-3 investment opportunities every month with an offering size between $100,000 to $400,000. The average resolution time for commercial cases in the U.S. is 27 months from filing to disposition.