Accessing Peer-To-Peer Loans For Alternative Income

Allen Webb, Senior Portfolio Specialist at RiverNorth Capital Management talks with Julie Cooling, Founder and CEO at RIA Channel about their new marketplace lending strategy, specifically, RMPLX.  With roughly $30 billion in originations in 2016, peer-to-peer lending, or marketplace lending is still just a sliver of the overall lending market with lots of room to grow. This new asset class began in the UK in 2004 and hit the U.S. with firms such as Lending Club and Prosper. These companies match borrowers and lenders via a web-based portal and originate consumer, small business and specialty loans.  RiverNorth created a closed-end interval fund, RMPLX, to provide access to these loans via daily subscriptions and quarterly redemptions. They conduct due diligence on lending platforms using their own metrics and underwriting processes. As advisors and consumers continue to seek alternative income strategies for their investment portfolios, marketplace lending strategies offer opportunistic solutions. To access further research on this growing asset class, visit RiverNorth.