Prosper Said to Pitch Fund That Would Buy Its Online Loans
- Consumer credit fund will be passive, won’t use leverage
- Rival fund run by LendingClub has seen withdrawal requests
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Prosper Marketplace Inc. is setting up a private fund that will purchase consumer loans arranged through its online platform, providing another source of capital to fuel growth after other investors pulled back.
Executives at the closely held company are meeting with potential clients this week to pitch the Prosper Capital Consumer Credit Fund, according to a person familiar with the matter who asked not to be identified discussing confidential talks. The fund’s managers are targeting returns of 6 percent to 8 percent.