Crowdfunding platform PeerStreet launches debt fund for Covid-era opportunities

Investors will gain exposure to distressed debt and other niche investments

TRD NATIONAL /
Aug.August 21, 2020 04:05 PM
PeerStreet co-founders Brew Johnson (CEO) and Brett Crosby (COO)

PeerStreet co-founders Brew Johnson (CEO) and Brett Crosby (COO)

Real estate investment platform PeerStreet is getting in on the distressed-debt investment game.

Through its new Peer Street Credit Opportunity Fund, the El Segundo, California-based crowdfunding startup will enable investors to take advantage of pandemic market disruption by providing exposure to distressed debt, warehouse financing and subordinate investments, the firm said this week.

“This was the next logical step in the evolution of our marketplace and provides more options for different investment preferences,” co-founder and CEO Brew Johnson said in a statement. He compared the move to functionality offered by platforms like Robinhood or TD Ameritrade, where investors can invest in ETFs and mutual funds as well as individual stocks.

PeerStreet investors had previously only had the option to invest in individual loans, although some users had been creating their own “curated” funds with existing tools. “Some investors have made it clear that they would prefer to deploy larger amounts of capital at once into different strategies. We are giving them an easy way to do that,” co-founder and COO Brett Crosby said.

Last fall, the startup completed a $60 million Series C funding round and secured $4.25 billion in new capital commitments from institutions to purchase loans through its platform. The funding round was led by Colchis Capital, with Andreessen Horowitz, World Innovation Lab and Thomvest Ventures also participating.

When the coronavirus crisis hit in March, PeerStreet laid off 50 employees, according to layoff tracker Layoffs.fyi. The firm later received a $2 million to $5 million Paycheck Protection Program loan to retain 150 jobs. PeerStreet also paused loan buying in late March, and resumed residential bridge loan purchases in May following a review of market conditions.

Contact Kevin Sun at [email protected]


Related Articles

arrow_forward_ios
305 East 61st Street and Jason Carter of Carter Management Corp. (Google Maps; Carter Management Corp.)

Upper East Side condo conversion fetches $51M at auction

Upper East Side condo conversion fetches $51M at auction
Hong Kong Stock Exchange (Getty)

Chinese proptech firm Ming Yuan Cloud goes public

Chinese proptech firm Ming Yuan Cloud goes public
Zumper CEO Anthemos Georgiades (Getty; iStock)

What you need to know about Zumper, a $400M startup accused of renter bias

What you need to know about Zumper, a $400M startup accused of renter bias
Tillary Hotel at 85 Flatbush Avenue (Image via Kutnicki Bernstein Architects)

Isaac Hager’s Downtown Brooklyn hotel heads to foreclosure

Isaac Hager’s Downtown Brooklyn hotel heads to foreclosure
(iStock)

Banks see CRE loans delinquencies hit 5-year high

Banks see CRE loans delinquencies hit 5-year high
Ed Adler and Wendy Silverstein (Getty)

Wendy Silverstein, Ed Adler launch loan restructuring biz

Wendy Silverstein, Ed Adler launch loan restructuring biz
Orchard’s CEO and co-founder, Court Cunningham (Credit: iStock)

Orchard raises $69M in latest funding round

Orchard raises $69M in latest funding round
Clockwise from top left: Daniel Schreiber, Rich Barton, Glenn Kelman, Andy Florance and Glen Sanford.  

No “rout” about it: Real estate tech stocks rebound

No “rout” about it: Real estate tech stocks rebound
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...