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East Coast Credit Fund Puts $250 Million to Work on Patch of Land Platform

PatchofLand_homepage_Feb2016

An East Coast credit fund will invest $250 million across the Patch of Land platform. The investment comes in the form of an agreement to buy loans in a “forward flow arrangement,” and represents the credit fund’s first move into the P2P marketplace lending space.

CEO and Co-founder of Patch of Land Jason Fritton said the partnership will enable his company to “fill loans on a programmatic basis, creating a higher level of validation for the entire industry.”

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Pictured (left to right): Patch of Land’s AdaPia d’Errico (CMO) and Brian Fritton (CTO and co-founder) demonstrating the company’s platform at FinovateFall 2014 in New York.

Fritton added that individual accredited investors – more than 95% of Patch of Land’s loan funding to date – will continue to be a priority. “We will continue to deliver quality product for the portfolios of large institutional players and the thousands of accredited investors who invest in our loans every day.”

In the two years since its launch, Patch of Land has funded more than 200 projects with an average blended rate of return of 12%. Patch of Land has returned more than $20 million in principal and interest to investors, who have suffered no loss of principal. The company’s platform offers proprietary risk scoring and pricing models which, in the words of Patch of Land EVP of business development, Jillian Jaccard, “appeal not only to institutional buyers, but also the company’s individual investors.”

Patch of Land added commercial real estate to its platform in August 2015, and last spring announced a $23 million Series A round led by SF Capital Group. The company was featured in Forbes magazine in the summer of 2015 in a column on top fintech trends, and was named by Entrepreneur magazine as “1 of 100 brilliant companies to watch” in 2015.

Founded in February 2013 and headquartered in Los Angeles, California, Patch of Land demonstrated its platform at FinovateFall 2014.