 | Crowd Valley has observed over the past two years a growing interest from traditional finance personnel, such as fund managers and investment advisers, towards P2P marketplaces. This trend has also been observed by finance journalists who recently reported that Wall Street is seeing an increase of investment of P2P debt by fund managers. |
Two of the major P2P platforms in the US stated that in 2008 most of the loans taking place on their websites were fractional, with many lenders investing about $25 per loan. Now, recent estimates show that the trend has inverted, with approximately 65% of P2P loans financed entirely by institutional investors.
During the last couple of years, the market also witnessed the creation of specific trust funds dedicated to investments into P2P debt, which target 6%-8% annual return. Although a fund manager in the field commented “the sector remains at very early stages, and most innovations in financial services go through an early growth phase and then are challenged by more difficult conditions before maturing”, it is believed by many of his colleagues that there is potential for long-term growth in the sector. This explains why some fund managers also invested directly in the major P2P lending platforms in the US and Europe.
Given the outstanding growth of P2P lending, underlined by recent statistics, it is of little surprise that this new market caught the attention of Wall Street professionals too. While the sector grows and establish in the upcoming years, it is likely we will see more and more Wall Street into the P2P market.
References
Evans, J. (2015). Fund Managers Turn to P2P. FT.com
During the last couple of years, the market also witnessed the creation of specific trust funds dedicated to investments into P2P debt, which target 6%-8% annual return. Although a fund manager in the field commented “the sector remains at very early stages, and most innovations in financial services go through an early growth phase and then are challenged by more difficult conditions before maturing”, it is believed by many of his colleagues that there is potential for long-term growth in the sector. This explains why some fund managers also invested directly in the major P2P lending platforms in the US and Europe.
Given the outstanding growth of P2P lending, underlined by recent statistics, it is of little surprise that this new market caught the attention of Wall Street professionals too. While the sector grows and establish in the upcoming years, it is likely we will see more and more Wall Street into the P2P market.
References
Evans, J. (2015). Fund Managers Turn to P2P. FT.com
 | About the author - Irene Tordera Born and raised in Milan, Italy, Irene is an International Business graduate, with a strong interest for innovative ideas that can simplify our lives. During her studies, she co-founded an online community for sportspeople and worked in marketing positions at Ogilvy & Mather Advertising and at the European Business Angel Network, in Brussels. She is a passionate blogger about crowdfunding and the startup ecosystem. |
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