Lendity AG, a provider of investment solutions for alternative lending and private debt, has launched a diversified bond to invest in loans from small and medium-sized enterprises as well as consumer loans originated through Swiss marketplace and peer-to-peer lenders.
Bank Julius Baer (VTX: BAER), a Swiss publicly listed bank with CHF388.4 billion of assets under management, subscribed the whole issuance.
Lendity monitors the platforms’ underwriting criteria to ensure loan quality and to proactively adjust the portfolio. “Managing risk is essential when investing in private debt. We focus on managing credit, platform, servicing, and legal risk,” says Rafael Karamanian, partner at Lendity. In addition, Lendity secures meaningful allocation from platforms and negotiates attractive terms which are directly passed to bond holders.
To further reduce risk, the Lendity bond is highly diversified by loan type, grade and originating platform. “This high diversification allows a significant reduction of idiosyncratic risk,” said Armen Karamanian, partner at Lendity. The Lendity bond represents the underlying loan portfolio in its entirety with no additional counterparty risk.
