LendingRobot Series unilaterally inks major funding deal regarding Prosper Marketplace
Institutional money is once again pouring into alternating lending. For instance, Prosper Marketplace has recently inked major deals to supply capital for financing loans originating on their platform with a procession of prestigious major institutional investors, including Soros Fund Management, Jefferies, and Third Point LLC. As the Wall Street Journal reported a few months back, these institutions have committed to purchase a combined $5B in loan obligations over the next three years. Part of the deal included warrants to purchase shares representing 35% of Prosper Marketplace.
In the same spirit, LendingRobot is proud to announce today its commitment to deploy $50,000.01 of cash to fund Prosper loans over a period of two weeks.
Adding to a long list of ‘firsts’ for LendingRobot, this groundbreaking deal represents the first time that a robotically-managed fund has almost signed a major deal with an alternative lending marketplace.
I was able meet and and discuss the landmark deal with our President and C.E.O., Emmanuel Marot:
Stephen: “I heard you nearly met with several executives of major origination platforms during the Lendit conference. How did those conversations go?”
Emmanuel: “Well. I mean, most of these people were ignoring us, but we were able to move forward nonetheless. I’ll add that all the conversations we did not have were, very, very productive.”
Stephen: “Some major institutional investors have also recently inked a deal with Prosper marketplace. Can you describe the differences between our commitment and theirs?”
Emmanuel: “It’s no comparison, we have the best commitment. First of all, because there were no meetings, we didn’t have to compromise on any of our core requirements. Second, LendingRobot Series is committing to invest in a much, much shorter timeframe. We’re talking weeks instead of years. This accelerated deployment of capital was a major consideration for all the parties involved (meaning, us), and we negotiated successfully with ourselves to make sure we had enough supply to meet our requirements.
Stephen: “Does it mean LendingRobot will have warrants, like the other institutional investors had?”
Emmanuel: “Even better. I am personally hopeful we’ll be able to score a few Prosper T-shirts at discounted prices. We’re talking way below market value, like 50% off or more. Since we already have some Lending Club and LendingHome T-shirts, this means that out of the four platforms LendingRobot Series is investing in, we’ll only need a Funding Circle one to complete our set.
Stephen: “I’ve seen some Prosper T-shirts, they’re very dapper. Were there any other major roadblocks to work through?”
Emmanuel: “Although I did not meet with Ron Suber regarding our commitment, I anticipated concerns about the extra cent and prepared a careful and detailed explanation about how, through rigorous and thorough back-testing, $50,000.01 was algorithmically determined to be ideal amount to invest in the platform at this time. I must say, Ron missed out on a stunning and poignant two hour expository that, I’m sure, would have addressed any concerns he may or may not have had about the extra cent.”
Stephen: “It does seem odd that the number isn’t even.”
Emmanuel: “Indeed, but we like to be precise. Or maybe it will turn out to be a rounding error; the binary floating-point rounding in Python is so abstract that it takes the mind of a developer to fully appreciate it. It’s very geeky to have a rounding error that gives an extra cent.”
Stephen: “Remarkable. Thanks for taking the time to sit down with me.”
Emmanuel: “We were seated?”
- Stephen Zentner
- April 1, 2017
- 1 Comment