Peer-to-Peer Lender Prosper to sell $5 Billion in loans
Prosper Marketplace, America’s first peer-to-peer lending marketplace, announced on Monday that it had closed a deal to sell $5 billion of loans to a consortium of investors over the next two years.
The consortium includes New Residential Investment Corp., Jefferies Group, and Third Point. “We’re very pleased to be working with this consortium of investors, and believe they will be great long-term partners as we continue to build a large-scale business,” David Kimball, CEO of Prosper Marketplace said.
Founded in 2005, Prosper is an online platform that matches lenders and borrowers. The growth in peer-to-peer lending is part of a wider shift in the fintech industry as participants look to lower cost and increase convenience. In its press release, Prosper said monthly loan originations had steadily increased since July 2016 and its loan portfolio had net returns for January 2017 of 7.86 percent.
CEO Kimball said the deal with the consortium will enable long-term growth. “This deal gives us the funding stability and additional capital markets expertise we need to continue to grow our marketplace and achieve profitability in 2017,” Kimball said.
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