Colchis Capital Shutting Down Main Funds

Reuters reports that Colchis Capital Management, a major player in investing in online direct lending platforms is winding down its main funds due to the coronavirus; according to a letter to investors from Robert Conrads, Colchis Chief Investment Officer: “The largest risk to the Colchis Income Funds is unemployment for our consumer loans and weakness in the housing market for our bridge real estate loans…Moreover, there is no consensus as to the timing or strength of the recovery in employment and economic conditions.” Colchis noted to investors that annual returns could be -1.7% with an unemployment rate of 10%; the official US unemployment rate is 5.5% but is likely much higher than that according to economists; Colchis has also suspended withdrawals and expects a 19-month process to return all fund equity. Reuters

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