Victory Park Capital (VPC) Investments says it is shifting investments from peer-to-peer loans to balance sheet investments after losses in October triggered significant writedowns and caused a revenue return of -1.25%; in October the return was primarily caused by a substantial capital loss of -203 basis points from “certain marketplace loans” which it did not disclose and also from losses in a securitized portfolio of Avant loans; according to Cormac Leech, “the marketplace lending portfolio is not quite seasoned, while the balance sheet side of investments is doing really well”; this performance has caused the change in focus to balance sheet investments. Source
