Last week a new player emerged on the marketplace lending scene. A Form N-2 registration was filed with the SEC by Van Eck Overland Online Finance Trust to form a new, publicly traded closed-end fund. UBS, the world’s largest wealth management firm, was named as lead manager.

I have known Alex Dunev from UBS for quite some time. Alex leads UBS’ coverage of marketplace lending, so when I discovered this filing we, along with Steve Pierson, UBS’ Global Head of Financial Technology, had a phone conversation to discuss the offering.

The First Publicly Traded Closed-End Fund

The Van Eck Overland (“VEO”) closed-end fund will be the first listed closed-end fund that invests primarily in loans originated by online lenders. Van Eck is an investment management firm that has a long history with mutual funds and ETFs. Overland Advisors will be the sub-advisor of this fund with Peter Sterling as the portfolio manager. Sterling has been investing in marketplace lending for some time as the President of the Overland Direct Yield Fund. Alex Dunev commented: [Read more…]