lendit master deck final wn canaan partners
Post on 07-Jul-2018
217 Views
Preview:
TRANSCRIPT
-
8/18/2019 Lendit Master Deck Final WN Canaan Partners
1/30
Copyright © Canaan Partners 2016, All rights reserved.
The Characteristics of Capital
in theMarketplace Lending World
Dan Ciporin
-
8/18/2019 Lendit Master Deck Final WN Canaan Partners
2/30
Copyright © Canaan Partners 2016, All rights reserved.
Marketplace Lending: Historical Landscape
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
2005Zopa incorporatedin UK as first P2P
marketplace
2008Lending Clubreceives SEC
registration
2008-2012Retail/HNW
individual capitalfocus
2011Arcadia/Eaglewoodthe first dedicated
platform funds
2012-2016Institutional capital floodgatesopen: structured credit funds,
securitization market
st
-
8/18/2019 Lendit Master Deck Final WN Canaan Partners
3/30
Copyright © Canaan Partners 2016, All rights reserved.
MPL Funding Is Now Largely Institutional Hedge Fund Based
$0
$3,000,000,000
$6,000,000,000
$9,000,000,000
$12,000,000,000
2008 2009 2010 2011 2012 2013 2014 2015
$12
$10
$8
$6
$4
$2
$0
$ $ $ $
Retail-driven Growth
Institutional-driven Growth
U.S. Annual Origination Volume by Loan Type ($ Billions)
Source: Orchard
-
8/18/2019 Lendit Master Deck Final WN Canaan Partners
4/30
Copyright © Canaan Partners 2016, All rights reserved.
Institutional Bias Is Actually Much Stronger
500+ originators
-
8/18/2019 Lendit Master Deck Final WN Canaan Partners
5/30
Copyright © Canaan Partners 2016, All rights reserved.
When the Cycle Turns,What Was Once Strength Becomes Weakness
$0
$8
$15
$23
$30
J F M A M J J A S O N D JSource: Asset Backed Alert
US ABS IssuanceVolume in Past 15 Months ($ Billions)
-
8/18/2019 Lendit Master Deck Final WN Canaan Partners
6/30
Copyright © Canaan Partners 2016, All rights reserved.
As Clearly Evidenced in Recent MPL Securitizations
100
200
300
400
500
600
CHAI 2015-PM1; 8/5/2015 CHAI 2015-PM3; 12/18/2015
Source: Bloomberg, PeerIQ Research
Weighted Average Spread (bps)
-
8/18/2019 Lendit Master Deck Final WN Canaan Partners
7/30
Copyright © Canaan Partners 2016, All rights reserved.
A Lesson Legacy Players Have Learned
$0
$50
$100
$150
$200
2007 2008 2009 2010 2011 2012 2013 2014 2015
Debt Deposits
$ Billions
$0
$25
$50
$75
$100
2007 2008 2009 2010 2011 2012
Debt
Source: SEC filings
-
8/18/2019 Lendit Master Deck Final WN Canaan Partners
8/30
Copyright © Canaan Partners 2016, All rights reserved.
Including Even the Most “Institutional” of Players
-
8/18/2019 Lendit Master Deck Final WN Canaan Partners
9/30
Copyright © Canaan Partners 2016, All rights reserved.
Reliance on One Capital Source Is Foolhardy,Especially When It Is an Intermediate Source
$34TRetail $37TInstitutional
$$ $
$ $$$$
$$
$ $$ $
HEDGEFUNDS
Wire HousesRIAs
Broker/DealersSelf-directed Investors
Bank Deposits
2015 Marketplace Lending
RETAIL
BankPension Fu
Insurance ComFoundations/EndSovereign Fund
INSTITUT
$ $$ $
$$ $
Source: Cerulli Associates & US Treasury
-
8/18/2019 Lendit Master Deck Final WN Canaan Partners
10/30
Copyright © Canaan Partners 2016, All rights reserved.
Wire HousesRIAs
Broker/DealersSelf-directed Investors
Bank Deposits
BankPension Fu
Insurance ComFoundations/EndSovereign Fund$
$ $$
$$$
$$
$$ $
$ $
$$
DIRECTINVESTMENT$$
$$$$
$
$
$
$
$$$
$$ $
Which DIRECT Capital Sources Fuel Future Growth?
$34TRetail $37TInstitutional
RETAIL INSTITUT
2015 Marketplace LendingSource: Cerulli Associates & US Treasury
-
8/18/2019 Lendit Master Deck Final WN Canaan Partners
11/30
Copyright © Canaan Partners 2016, All rights reserved.
Institutional Capital is Efficient
2009 2010 2011 2012 2013 2014 2015Retail Institutional
Time to Scale Retail >
Time to Scale Institutional
Year 1 YeaYear 2 Year 3 Year 4 Year 5 Year 6
Source: Canaan Partners analysis
-
8/18/2019 Lendit Master Deck Final WN Canaan Partners
12/30
Copyright © Canaan Partners 2016, All rights reserved.
Great Recession Bull Market
-30%
-23%
-15%
-8%
0%
8%
15%23%
30%
1/1/11 1/1/12 1/1/13 1/1/14 1/1/15 1/1/16
FDIC Deposit Growth HF Net Flows % of AUM
However Institutional Capital Is Fickle
Source: FDIC & SS&C GlobeOp Capital
-
8/18/2019 Lendit Master Deck Final WN Canaan Partners
13/30
Copyright © Canaan Partners 2016, All rights reserved.
Retail Capital is Sticky and Enormous
Source: Phoenix Global Wealth Monitor (2015)
120M US Households
1M5M
23M
85M
7M
$100K - $500K
$1M - $5M
$5M+
-
8/18/2019 Lendit Master Deck Final WN Canaan Partners
14/30
Copyright © Canaan Partners 2016, All rights reserved.
Retail Direct
1 year payback
Institutional
4 month payback
However Retail Has Higher Costs
Source: Canaan Partners analysis
Capital Diversification Is the Answer in Different “Flavors” of Volatilit
-
8/18/2019 Lendit Master Deck Final WN Canaan Partners
15/30
Copyright © Canaan Partners 2016, All rights reserved.
Capital Diversification Is the Answer – in Different “Flavors” of Volatilitand Cost
C o s t “Retail
Investors”
Self-DirectedInvestors
“Opportunistic
Investors”
FinancialAdvisoryChannels
Lower
Higher
“Asset allocationinvestors”
HedgeFunds
Institutions
Volatility HigherLower
-
8/18/2019 Lendit Master Deck Final WN Canaan Partners
16/30
Copyright © Canaan Partners 2016, All rights reserved.
New Diversified Capital World Winners
BrandRegulatoryEmbracers
CreditHistory
Technology andProduct
Secondary
Market
$
-
8/18/2019 Lendit Master Deck Final WN Canaan Partners
17/30
Copyright © Canaan Partners 2016, All rights reserved.
Liquid Secondary Market
Secondary Market Key to Every Mature Market
Equities
FX
Derivatives
Bonds
ABS
Commodities
Secondary
Market
$
-
8/18/2019 Lendit Master Deck Final WN Canaan Partners
18/30
Copyright © Canaan Partners 2016, All rights reserved.
New Diversified Capital World Winners
BrandRegulatoryEmbracers
CreditHistory
Technology andProduct
Secondary
Market
$
-
8/18/2019 Lendit Master Deck Final WN Canaan Partners
19/30
Copyright © Canaan Partners 2016, All rights reserved.
Technology and Product
RETAIL INSTITUTIONA
UI / UX
RIA & Custodian IntegrationPrincipal Protection
Regulatory RequiremenData Analytics
Order Execution InfrastruReporting / PortfolioManagement Tools
-
8/18/2019 Lendit Master Deck Final WN Canaan Partners
20/30
Copyright © Canaan Partners 2016, All rights reserved.
Integration With RIA Workflow
Marketplace Lenders Must Build it on Their Own Or Integrate with RIA TechnolSource: Lend Academy
Independent RIA Daily Wor
CUSTODIANPORTFOLIO
MANAGEMENTSYSTEM
TURNKEY ASSMANAGEMEN
PLATFORMOR
RIA
Marketplace
Lender
f
-
8/18/2019 Lendit Master Deck Final WN Canaan Partners
21/30
Copyright © Canaan Partners 2016, All rights reserved.
New Diversified Capital World Winners
BrandRegulatoryEmbracers
CreditHistory
Technology andProduct
Secondary
Market
$
N Di ifi d C i l W ld Wi
-
8/18/2019 Lendit Master Deck Final WN Canaan Partners
22/30
Copyright © Canaan Partners 2016, All rights reserved.
New Diversified Capital World Winners
BrandRegulatoryEmbracers
CreditHistory
Technology andProduct
Secondary
Market
$
-
8/18/2019 Lendit Master Deck Final WN Canaan Partners
23/30
Copyright © Canaan Partners 2016, All rights reserved.
Embrace The Regulator
N Di ifi d C it l W ld Wi
-
8/18/2019 Lendit Master Deck Final WN Canaan Partners
24/30
Copyright © Canaan Partners 2016, All rights reserved.
New Diversified Capital World Winners
BrandRegulatoryEmbracers
CreditHistory
Technology andProduct
Secondary
Market
$
B d R t T t
-
8/18/2019 Lendit Master Deck Final WN Canaan Partners
25/30
Copyright © Canaan Partners 2016, All rights reserved.
Brands Represent Trust
Co opetition Competition and Acquisition?
-
8/18/2019 Lendit Master Deck Final WN Canaan Partners
26/30
Copyright © Canaan Partners 2016, All rights reserved.
GAFA MP
FINTEBANKING
Co-opetition, Competition – and Acquisition?
The Evolution of the Capital Base Is Clear
-
8/18/2019 Lendit Master Deck Final WN Canaan Partners
27/30
Copyright © Canaan Partners 2016, All rights reserved.
The Evolution of the Capital Base Is Clear
Total MPL Capital Base
Introduction Emergence Maturity ScaleIndividuals
Small institutionsIndividuals
Small institutionsHedge funds
IndividualsSmall institutions
Hedge fundsBanks
Closed end funds
InSmall
Hed
CloseMu
InsurancPens
Winners
-
8/18/2019 Lendit Master Deck Final WN Canaan Partners
28/30
Copyright © Canaan Partners 2016, All rights reserved.
Will bridge between bothinstitutional and retail
capital
Will leverage branhistory, technolog
regulatory comfort secondary liquidi
Winners
Marketplace Lending: A New Asset Class For All Capital Needs
-
8/18/2019 Lendit Master Deck Final WN Canaan Partners
29/30
Copyright © Canaan Partners 2016, All rights reserved.
Marketplace Lending: A New Asset Class For All Capital Needs
Will create a new asset class across
all capital sectors
$
-
8/18/2019 Lendit Master Deck Final WN Canaan Partners
30/30
Copyright © Canaan Partners 2016, All rights reserved.
Thank You
top related