If you go into any major hedge fund or Wall Street firm today you will likely find graduates of Baruch College’s Masters of Financial Engineering (MFE) program working at the trading desk. The MFE program at Baruch is where many algorithmic traders learn their craft. But not everyone coming out of that program goes to work on Wall Street. Some choose a very different course.
Simon Hermiz, Kenneth Chan and Richard Postelnik all had an entrepreneurial yearning. Sure they could have made great money working at a big bank or hedge fund but they wanted to do something different. They started NoteX360 before they graduated from Baruch because they feel that p2p lending and the broader alternative lending market could benefit from efficient aggregation and execution technology that is available in other asset classes.
Hermiz, Chan and Postelnik have spent most of their careers in finance with backgrounds in lending, trading, and technology. They have a combined 20-years of financial industry experience working at companies like Bank of America Merrill Lynch, BNY Mellon, Fifth Third Bank, Houlihan Lokey, and Pico Quantitative Trading.
After hearing about p2p lending, Hermiz attended the LendIt Conference last year in New York to learn more. He saw there was a huge opportunity to bring equity style execution technology to this new asset class. And he realized he could help build the technology that would help p2p lending become a serious asset class.
So, the three partners went about building the NoteX360 software while continuing with their classes at Baruch. They attracted some angel funding although they would not disclose how much. Regardless, they had a very low cost structure because they did all the development themselves.
Order Management and Execution for Institutional Investors
What does NoteX360 do exactly? They help institutional investors access p2p lending by executing and managing orders for them. They offer both a semi-automated and fully automated service.