Marketplace Lending Attracts Growing Interest from Institutional Investors

Peer-to-peer or “marketplace” lending is rapidly growing; although the sector did not exist only a few years ago, marketplace lenders issued $5.5 billion of loans in 2014.  As the marketplace lending industry grows, it is attracting a wider range of participants, including new platform operators, new types of borrowers and new sources of capital, with institutional investors potentially playing a critical role in shaping the industry.  Richards Kibbe & Orbe (RK&O) has released the results of its inaugural survey analyzing marketplace lending.  This article summarizes the results of the survey.  For additional insight from RK&O, see “The Newman/Chiasson Decision Continues to Have Implications for Insider Trading Compliance,” Hedge Fund Law Report, Vol. 8, No. 17 (Apr. 30, 2015); and “Puffery or Securities Fraud? Litvak Conviction Sheds Light on Permissible Bounds of Bond Sales Talk and the Evidentiary Power of Bloomberg Chats,” Hedge Fund Law Report, Vol. 7, No. 11 (Mar. 21, 2014).

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