Podcast 13: Don Davis of Prime Meridian on Institutional Investing

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Don Davis is the president of Prime Meridian Capital Management and the managing partner of the Prime Meridian Income (PMI) Fund. This is a fund for accredited investors that was started in 2012 and invests primarily on the Prosper platform today.

While many of us complain about the competitive investing environment at Lending Club and Prosper today and how difficult it is to invest in all the loans that meet our criteria, institutional investors have an even more challenging time. Here, Davis walks us through some of these challenges and how his fund is managing them.

In this podcast you will learn:

  • Why Davis decided to create a fund in the p2p lending space.
  • How and where the PMI Fund invests.
  • Who the typical investors are in the PMI Fund.
  • How the PMI Fund ties in with Novus Investments, his investment management firm.
  • The investment strategy for the PMI Fund.
  • The importance of phasing in large investments to reduce cash drag.
  • The size of the PMI Fund and Novus Investments.
  • The returns the PMI Fund provides for investors.
  • Where yields are going for p2p investors.
  • How Davis feels about the dramatic growth at Prosper and Lending Club.
  • Why he feels that Prosper and Lending Club are doing a good job today.
  • The challenge with the reduced maximum investment amount of 10% of the loan at Prosper.
  • What Davis thinks of the recent acquisition by Lending Club.
  • The difference between an active and a passive investing approach.
  • What the future holds for Prime Meridian.

You can subscribe to the Lend Academy Podcast via iTunes or Stitcher. There is an audio player directly below or you can download the MP3 file here.

  • Peter Renton

    Peter Renton is the chairman and co-founder of Fintech Nexus, the world’s first and largest digital media and events company focused on fintech. Peter has been writing about fintech since 2010 and he is the author and creator of the Fintech One-on-One Podcast, the first and longest-running fintech interview series. Peter has been interviewed by the Wall Street Journal, Bloomberg, The New York Times, CNBC, CNN, Fortune, NPR, Fox Business News, the Financial Times, and dozens of other publications.