PeerStreet, a technology platform for investing in real-estate-backed loans based in Los Angeles, has created a fund strategy to expand investors’ access to real estate debt.
The Credit Opportunity Fund is designed to increase availability of investments In real estate loans through the PeerStreet platform to give investors options to diversify their portfolios, PeerStreet said in announcing the new program.
The program “will allow investors to take advantage of changing market conditions and gain exposure to opportunities that were not previously available on PeerStreet, such as distressed debt, warehouse financing and subordinate investments,” PeerStreet said.
“This was the next logical step in the evolution of our marketplace and provides more options for different investment preferences,” Brew Johnson, cofounder and CEO of PeerStreet, said in a statement. “Our goal is to continually expand our products to serve our customers whether they are individuals, family offices, RIAs or institutions.”
PeerStreet was one of the first firms to provide fractional investing in real estate loans, making the process of buying into real estate loans similar to buying stocks, PeerStreet said.
“PeerStreet investors are already, in essence, creating their own curated funds either manually or through our automated investing features. But some investors have made it clear that they would prefer to deploy larger amounts of capital at once into different strategies,” Brett Crosby, cofounder and chief operating officeer of PeerStreet, said in a statement.
Loans made available through PeerStreet are sourced from vetted private lenders throughout the United States who often have regional real estate expertise and long-term borrower relationships, the firm said. PeerStreet enables the lenders to expand their lending capital, empowering them to make more loans.