AUSTIN, Texas–(BUSINESS WIRE)–CrowdOut Capital LLC, a pioneering non-bank private lender for middle market companies, today reported that it grew originations 8X in 2018, by leading $165 million. The company has created the first and only platform in the market allowing accredited investors the opportunity to pick and choose from their vetted corporate loan offerings.
“Market volatility is driving many investors to seek alternative opportunities that deliver higher net return and mitigated risks,” said Alexander Schoenbaum, CEO of CrowdOut Capital. “We see an even greater opportunity in 2019 to help grow our investor network while adding to our already diversified loan portfolio.”
CrowdOut Capital has seen unprecedented growth in 2018. Significant milestones include:
- Originations Growth – The company achieved an 8X growth in originations led over the last 12 months
- Expanded Network – The company expanded its investor network by 150% attracted by a significantly larger offering of loans to choose from
- Elevated Returns – Since inception, CrowdOut has delivered a net, unlevered return of over 12% while maintaining a conservative portfolio of high-quality credit and modest leverage
- Secured Investment – $2.5 million in capital was raised to accelerate growth with proceeds being used to grow the team and continue development of its technology, both front-end for investors and back-end for portfolio management and loan servicing
- Achieved Awards – CrowdOut Capital CEO Alexander Schoenbaum was recognized as one of M&A Advisor’s 2018 Emerging Leaders and was named to the 2018 Austin Inno 50 on Fire list, which identifies the hottest Austin organizations and people
Investors are drawn to CrowdOut’s web-based platform that offers individuals the opportunity to invest as little as $1,000 directly into corporate loans that range from $3 million to $50 million in size. CrowdOut has developed a niche in the private credit space by offering borrowers and investors a shorter-term (1 to 4 year) loan that serves as transition capital.
“The private debt market has experienced explosive growth in recent years. We believe that growth has led to looser underwriting standards that will eventually cause a dislocation in the leverage loan market,” said Schoenbaum. “CrowdOut will weather this storm well and continue to excel because of our disciplined approach to underwriting and papering our loans. We refuse to do covenant light loans.”
CrowdOut Capital is a private lending syndication platform that offers profitable, middle market companies a better way to raise capital. Its tech-enabled marketplace provides a solution for companies seeking non-bank lending while offering family offices, institutional and accredited investors the opportunity to invest in the private debt on a deal-by-deal basis. CrowdOut has led more than $165 million in originated loans since inception. To learn more, please visit www.crowdout.com.