Zug based Woodman Asset Management AG has partnered with ILA Capital, to launch a machine learning, marketplace lending strategy, with an initial $100m commitment.
The short duration, high yielding strategy invests primarily in secured and unsecured loans to capitalise on the growing marketplace lending theme.
ILA Capital is an SEC registered, Boston based fund manager founded in 2015 by Chris Malloy and Lauren Cohen; and career banker Tom Grant. With an emphasis on deep learning, ILA has constructed an investment approach that improves loan selection while developing a better understanding of borrower behaviour to reduce defaults and better manage risk in the portfolio.
In early 2018, ILA Capital partnered with Woodman, who in return committed $100m in investment capital.
“We are honoured to have Woodman as partners as we launch our new marketplace lending fund. Woodman’s deep experience and global reach will be key in supporting ILA’s innovative approach to this growing asset class,” said Tom Grant, ILA Capital CEO.
“As bank lending evolves, there is greater demand from borrowers to access capital through a process that suits the borrower in terms of convenience, time, and efficiency. For investors, it is about getting the right risk, with the right return. ILA Capital looks to be the premier firm in this evolving short duration, high yield investing space,” he continued.
Daniel Aaxman, founder and CEO of Woodman Group, said, “With ILA, Woodman will provide opportunity to deliver true innovation to our clients in the fixed income and the alternative investment space.”