AUSTIN, Texas--(BUSINESS WIRE)--CrowdOut Capital, the first tech-enabled online marketplace to fund corporate loans for middle market companies, announced it funded more than $112 million in loans in less than two years. Accredited investors choose from the company’s vetted loan offerings on a deal-by-deal basis.
“Our platform allows individuals and institutions to invest directly into loans of middle market companies, which represent the backbone of our economy,” said Alexander Schoenbaum, CEO of CrowdOut Capital. “These one to five-year loans help take these companies to the next level. We are just beginning to hit our stride and are filling an unmet need of borrowers and investors alike. Our transactions allow companies to avoid much of the long duration and high costs of traditional credit facilities, while providing our investors an average net return of over 11 percent.”
CrowdOut funds loans as small as $3 million to companies with annual revenues between $10 - $500 million to fuel growth. Its loans have reached borrowers from a variety of market sectors. CrowdOut recently funded Schweizer RSG’s carve-out of Lockheed Martin’s S-300 and S-333 helicopter manufacturing operations. CrowdOut also provided project finance to Lloyd Electric, a disabled veteran small business, to help rebuild the power grid in Puerto Rico after Hurricane Maria ravaged the island.
In the last six months, CrowdOut Capital has set a new standard in the private lending market by dramatically increasing its velocity of loans funded. Several milestones include:
- Grew Investor Network – The company quickly surpassed 100 investors on the platform and continues to add new investors.
- Elevated Returns – Investors are currently yielding 12.1 percent net return after fees on investments made in Q1, making it the strongest quarter on record.
- Decreased Selling Time – The speed of CrowdOut’s sell-through on loans sold via its online marketplace has increased dramatically. A recent loan was fully subscribed in 25 hours.
- Warehouse Facility Acquired – Committed capital gives borrowers and lenders an additional level of comfort that loans will close timely.
CrowdOut has an extensive underwriting process. Its due diligence includes proprietary screening and data analytics. CrowdOut’s financial professionals conduct detailed analysis and stress testing that evolved from years of experience working for traditional lenders. The company collaborates with each borrower to develop an optimal debt structure for both sides of the transaction. This includes loan covenants that mitigate default risk and monitoring to ensure spending does not outpace cashflow.
CrowdOut alerts its investor network of an upcoming loan opportunity. Accredited investors can then invest into the loan of their choice. CrowdOut’s private debt investment opportunities provide attractive yields that have not been available to individual investors, family offices or registered investment advisors for their clients before.
CrowdOut Capital is a private lending syndication platform that offers profitable, middle market companies a better way to raise capital. Its tech-enabled marketplace provides a solution for companies seeking non-bank lending while offering family offices, institutional investors and accredited investors the opportunity to invest in the private lending space on a deal-by-deal basis. CrowdOut has funded more than $112 million in the last two years. To learn more, please visit www.crowdout.com.