(Bloomberg) – Investment firm Medalist Partners has essentially paid double investors ‘money in its first wealth-based personal loan fund, as banks’ withdrawal from many types of financing amid the pandemic has created opportunities for money management firms to capitalize on lending.
The fund, Asset-Based Private Credit Opportunity Fund I, fully returned the initial capital of investors in 2020 and distributed a further 97% in the first half of 2021, according to an expert. The portfolio has generated a net internal return of 23% since its launch in 2016, said the person who asked not to be named to discuss private information.
Medalist’s investments are focused on asset lending, including commercial and residential real estate, accounts receivable, auto equipment and aircraft, and litigation proceeds. Loans became increasingly difficult for many borrowers in the early stages of the pandemic, hitting industries like aerospace and commercial real estate. Meanwhile, government incentives and loose monetary policy have reduced defaults in a variety of credit areas.
Medalist’s Asset-Based Private Credit Opportunity Fund II, which closed in 2019 with pledges of $ 308 million, gained around 6.3 percent in the first six months of 2021, the person said. Now that most of the capital in this vehicle has been invested, the company is raising a third wealth-based personal loan fund. A first degree is scheduled for later this summer, the person added.
A Medalist representative declined to comment.
New York-based Medalist manages approximately $ 2 billion in strategies including personal loans, structured loans, and secured loan commitments. The company was part of Credit Suisse Group AG and the Candlewood Investment Group before becoming self-employed in 2018. Chief Executive Officer Greg Richter, Chief Operating Officer Michael Ardisson and Director of Private Credit John Slonieski previously worked together at the Swiss bank.
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