Smart Lenders AM’s process is a clear and straightforward one. The company creates and maintains partnerships with a few high quality online platforms that are among the biggest and most established in the industry. These platforms give us access to their loan marketplace, where we use our advanced selection model to pick and choose individual whole loans for purchase. We then purchase the selected loans and hold them until maturity, collecting the cash flows throughout the duration of the loans.
It is important to underline that investments are held until maturity of the underlying loans, as there is currently no secondary market for these loans.
We do not use any leverage to purchase loans. The loans purchased are not packaged into any sort of derivative product. Investors receive shares representing their portion of capital invested into the vehicle used to purchase the loans and entitling them to an equivalent share of the performance of the underlying portfolio. There is no “ABS-style tranching” involved – all investors bear the same level of risk.
Smart Lenders AM’s portfolios are highly diversified across individual loans to ensure an optimal spreading of risk across risk factors and a direct exposure to consumer and small business loans dynamics.
First private investments
First investments on Lending Club Loans with Proprietary Funds
Smart Lenders Asset Management is launched
Start of the activity
Full-scope UK AIFM
Smart Lenders Asset Management becomes AIFM Full Scope
Launch of Profit Participating Note programme
Investment through the first compartment of Direct Lending investment SA (DL1). Issuance of Profit Participating Notes (PPN) invested in portfolios of consumer loans.
Launch of the Luxembourg SICAV
Launch of the AIF, Moonstone Lending Fund 1
(formerly The Direct Lending 1)
Launch of the fifth Note
In total, five PPN were launched for a total of $125mn invested in consumer loans.
First investments in Small Business Loans
The SICAV starts investment in US Small Business Loans through a first platform specialised in Merchant Cash Advance.
Smart Lenders Asset Management transfers activities to France
Smart Lenders Asset Management SAS, regulated by the AMF, becomes the new AIFM of the Moonstone Lending SICAV
Launch of Research Programme on Artificial Intelligence
Joint research programme with Credit.fr on the applications of Artificial Intelligence to credit scoring and risk evaluation.