Crowdfunding Platform PeerStreet Now Offers a Debt Fund of Its Own
"PeerStreet investors are already, in essence, creating their own curated funds either manually or through our automated investing features."
Real estate investment platform PeerStreet recently expanded the opportunities available for investing through its peer-to-peer lending service.
Until now, investors using the platform could only invest in individual loans. Now comes the Peer Street Credit Opportunity, LP fund, which allows investors to put capital into a diversified fund that includes distressed debt, warehouse financing and subordinate investments. It gives PeerStreet users “more options to diversify, expand, and customize their real estate debt portfolios,” the company said in a press release.
“This was the next logical step in the evolution of our marketplace and provides more options for different investment preferences,” said Brew Johnson, cofounder and CEO of PeerStreet. “Just like investors on Robinhood or TD Ameritrade can choose whether to buy individual stocks, or invest in ETFs and mutual funds, we are providing similar options to our real estate investors. Our goal is to continually expand our products to serve our customers whether they are individuals, family offices, RIAs, or institutions.”
Similar to other crowdfunding platforms, PeerStreet says it has, until now, focused on helping investors create real estate debt portfolios by investing in individual loans. Users requested a way to invest in funds.
“PeerStreet investors are already, in essence, creating their own curated funds either manually or through our automated investing features,” said Brett Crosby, cofounder and COO of PeerStreet. “But 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. This strategy allows us to match investors to shifting opportunities that are made available through our nationwide network of lenders.”
Those lenders are based in the U.S. and vetted by the company. For them, the PeerStreet fund provides a new source of capital, PeerStreet said.
“PeerStreet enables these lenders to expand their lending capital, empowering them to make more loans, which flows through to borrowers who in turn improve their local communities—one house at a time,” the press release said.
Others operating in the crowdfunding real estate space include Fundrise in Washington, D.C., and RealtyMogul in Los Angeles. PeerStreet is based in El Segundo, California. They are seen as a sign of real estate’s progress in technology adoption.