Finitive LLC, a financial technology platform providing institutional investors with direct access to alternative lending investments, announced the launch of its zero-fee platform.
Finitive, which commenced operations in August 2017, has received commitments for transactions with an aggregate capacity of $1.3 billion. Several asset managers and banks have committed capital for transactions in the consumer, renewable energy and commercial real estate lending sectors.
"Alternative lending is a global, fast growing, multi-trillion-dollar asset class which remains highly inefficient, as investments require a lengthy and complex due diligence process. The sector is poised for change," said Jon Barlow, Finitive's Executive Chairman and founder. "Finitive's platform utilizes technology and artificial intelligence to make investing and raising capital in the sector simple and efficient, substantially reducing the amount of time and money that market participants – both investors and originators – spend closing transactions."
Through Finitive, banks, insurance companies, fund managers and institutional investors directly access proprietary, alternative lending transactions that are vetted by a team of senior credit professionals with substantial portfolio management experience at top tier credit funds. The Finitive platform provides investors with access to comprehensive investment memos, detailed data rooms, and Finitive shadow ratings, all of which bring greater transparency to traditionally opaque investment opportunities in the alternative lending sector, accelerating and simplifying the investor's due diligence process. Investors do not pay fees to Finitive.
Originators in the alternative lending sector, including specialty finance companies, online lenders, and private credit funds, are able to access large amounts of capital through Finitive's global network of investors who actively allocate to alternative lending. The Finitive platform allows its originator partners to raise capital across multiple asset classes and geographies for various transaction types, such as forward flow and whole loan sale programs, warehouse lines, and term loans.
Christopher Johnson, Finitive's CEO and co-founder, said, "We are extremely pleased with the initial results of our launch and our sizeable initial transaction volume further validates our model, which is to make alternative lending transactions fast, easy and transparent. Allocations by institutional investors to the alternative lending sector have significant room to increase, and Finitive will lead the way in facilitating these allocations."