Asset Alloction: Where Does the Asset Class Fit?
Asset Allocation: Where Does the Asset Class Fit? panel at LendIt USA 2015, with Brian Stern, Managing Director of BlackRock; Don Davis, Managing Partner of Prime Meridian; Brendan Carroll, Partner of Victory Park Capital; Tom Goila, Senior Managing Director of Aequitas; Andrew Hallowell, Co-Founder & CEO of Arcadia Funds; James Viceconte, Portfolio Manager of AllianceBernstein; and moderator James Alexander, Co-Founder of Alternative Capital Associates.
The panel led off with the bucket class: "Where do we group these new asset classes?" These asset classes derived from marketplace lending, according to Davis, of Prime Meridian, are not new asset classes. Marketplace lending is just like old school banking.
Davis also said that third parties like his company give increased liquidity and allow portfolio distribution. This is as opposed to passive investment that might reflect the return of the whole platform.
Carroll, of Victory Park Capital, said that the competitive edge is that, for some of these companies we control 100% of the volume of certain companies. Moving in size sometimes gets us better deals with the platforms.
Other questions that were discussed during the panel included:
• How do you screen platforms?
• How do you present this asset class?
• What about yield compression?