During the month ending June 30, 2014, the Direct Lending Income Fund returned 0.94% net to investors. June was much like May, with good loan performance attenuated somewhat by cash drag.
$48 million = 1,500+ loans
Including July 1 investments, we are at $48 million in assets. At this level, our portfolio of over 1,500 loans provides real diversification, significantly reducing the effects of chance alone on the Fund’s returns.
A wave of press is coming related to the forthcoming LendingClub IPO (no date yet), including an article in the San Jose Mercury News in which I was briefly quoted.
Although I have only a few Canadian clients, P2P lending is getting more attention from Canadian publications. I was interviewed by Wealth Professional in a long educational piece.
Finally, Peter Renton quoted me in an informative LendAcademy piece on the SEC’s contemplated change to the definition of accredited investor. No good can come from SEC meddling – hopefully nothing changes.
We continue in 2014 with no changes to our current strategy:
- Buy loans issued to established, local businesses from multiple online lenders.
- Maintain unlevered, double-digit, investment returns.
Actual + Pro-Forma Returns
(click to enlarge)
Note that IOU Financial has been making loans since 12/2009. Data in italics pre-dates the Fund’s launch in 11/2012 and is pro-forma based on IOU Central historical data. See end notes.
Want to tour the Fund’s live account on the IOUCentral.com platform? See the Fund’s actual loans as they reside in our account, including underwriting information, daily money flows, bank account reconciliation, and more. Contact Brendan to schedule a demo.
The Direct Lending Income Fund is the only fund to offer total transparency to prospective investors.
We expect no change to our underlying investment thesis:
“Established, local businesses will continue to be the most attractive creditors in the private debt asset class, and close association with experienced underwriters presents the most attractive way for individual investors to participate in business lending.”
Thank you for your interest in the Direct Lending Income Fund, LP
President, Direct Lending Investments, LLC
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About the Direct Lending Income Fund, LP
Earning returns does not have to be complicated. Loaning money and getting paid back is simple, effective, and can complement or replace traditional investments.
Investing in the Fund as a Limited Partner means joining a group of like-minded investors who want the simplicity and high returns that come from basic, short-term loans to creditworthy business borrowers. The Fund’s simple structure and straightforward goals make it an ideal way to experience private debt investing.
The investment is especially effective for the following types of accredited investors:
- Investors who want to begin their foray into private debt with a modest fund investment
- Mid-career savers with IRA accounts that have seen little improvement in a dozen years
- Retirees and others who want regular cash income from their investments
- Investors who want higher returns from their fixed income portfolio
- Investors who wish to diversify away from equities without sacrificing potential returns
This material is not intended as and does not constitute an offer to sell any securities or a solicitation of any offer to purchase any securities. Such an offer or solicitation may be made only by the confidential private placement memorandum of Direct Lending Income Fund, L.P. If you are considering whether to invest in Direct Lending Income Fund, L.P. you should rely not on the information in this material, but instead on the information in the private placement memorandum, which you may obtain from Direct Lending Income Fund, L.P. No part of this material may be copied or duplicated in any form or by any means, or redistributed, without Direct Lending Income Fund, L.P.’s consent.
Past performance is no guarantee of future performance. Investments may lose value over time and no return is guaranteed.
Returns since 11/2012 are actual. Pro-forma performance based on all IOU Loans since inception that were eligible for Fund purchase (98.3%). Returns are net of reductions for loan losses, IOU Central service fees, expenses at the full 1% cap, management/performance fees for a qualified client, and an estimate for cash drag. Hypothetical results have limitations. Decisions relating to investments and asset allocations are made with the benefit of hindsight and invariably show positive rates of return. Readers are cautioned that all performance results are presented solely for educational and illustrative purposes and are not intended for investing, or to be considered as investment advice. No representation is being made that the Fund will achieve performance similar to that shown.
Fund minimum investments may be increased, decreased, or waived at the discretion of management.
Please read the Risk Factors section of the PPM for more details on all risks to which investors are exposed.
Confidentiality Note: This document is confidential. No part of this document may be copied or distributed in any manner without the express consent of Direct Lending Investments, LLC or one of its Managing Members. The information contained in this e-mail message is intended only for the personal and confidential use of the recipient(s) named above. If the reader of this message is not the intended recipient or an agent responsible for delivering it to the intended recipient, you are hereby notified that you have received this document in error and that any review, dissemination, distribution, or copying of this message is strictly prohibited. If you have received this communication in error, please notify us immediately by e-mail, and delete the original message.