Los Angeles-based real estate loan investment platform PeerStreet has announced that it has successfully closed its Series C funding round, raising $60 million. The financing round was headed up by Colchis Capital; existing investors World Innovation Lab, Andreessen Horowitz and Thomvest Ventures also participated. The company has said that it plans to use the new capital to continue its talent expansion and scale its two-sided marketplace.
PeerStreet was founded in 2013 by CEO Brew Johnson and COO Brett Crosby. The company’s investment marketplace enables accredited investors to make investments in loans backed by real estate assets. The loans on PeerStreet’s marketplace are sourced via vetted private lenders across the United States that hold regional real estate expertise and have long-term borrower relationships.
Most of the loans available via PeerStreet’s marketplace are short-term, ranging from six to 24 months, with underwritten loan-to-values (LTVs) of below 75 percent.
For potential investors on PeerStreet’s marketplace, one of the major benefits of the service is PeerStreet’s investment review method. Every investment opportunity that the company offers on its platform is reviewed both algorithmically by PeerStreet’s technology platform and manually by the company’s seasoned real estate and legal teams. Once evaluated and approved, the company aggregates these loans for accredited retail and institutional investors; in turn, these investors provide PeerStreet’s approved lenders with capital. These lenders then can make loans to end borrowers to enable them to buy and improve properties with the goal of either selling them to homebuyers or renting them out to tenants.
As of March 2019, PeerStreet has surpassed $2 billion transaction on its platform since inception.
The company also announced that in addition to its successful Series C round, it has secured $4.25 billion in new capital commitments from institutions looking to purchase loans via PeerStreet’s platform. These commitments will serve to boost PeerStreet’s existing roster of short-term bridge loan products as well as propelling the growth of the company’s recently introduced 30-year buy to rent loan program.