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AltDirect is pleased to offer a medium term note with expected monthly principal and interest payments at a 10% target annualized interest rate. AltDirect purchased from a national motorcycle lender $5.0M of seasoned consumer installment loans secured by new and used motorcycles from manufacturers such as Harley Davidson, Suzuki, and Kawasaki.
Since its inception in 2015, the motorcycle lender has originated and funded more than 6,900 loans, totaling $65.1M, through its relationships with more than 560 dealers in 29 states. By selling these loans, the motorcycle lender freed up capacity to originate new loans and meet the demand for motorcycle purchases in the current environment where people are seeking more socially distanced outdoor activities.
The pool of loans has a weighted average age from origination of 12 months. Any loan that was defaulted or delinquent was removed from the pool at closing. In addition, the motorcycle lender has to buy back any loan that defaults within the first 90 days from closing. When consumers do not make their payments, the motorcycles can be repossessed and sold in an attempt to recover the outstanding balance of the loan.
Based on the projected monthly payments by the consumers, the notes are expected to fully repay within 34 months. It is expected that 37% of the principal will be returned within year 1 of closing and 31% in the following year.
This managed fund is now under the control of AltDirect. This management team has leadership credentials and experience with American Express, Merrill Lynch & Co, Bank of Montreal, Goldman Sachs, UBS, Macquarie, Credit Suisse, and Citigroup.
This fund currently holds over 10 million in assets and has a ready reserve. This fund invests in short-term consumer credit Motorcycle loans and has an existing portfolio of assets that include new and used motorcycles such as Harley Davidson, along with other popular models such as Suzuki, Honda, and Yamaha.
On August 31, 2020, Yieldstreet purchased a 100% interest in 1,755 consumer installment loans totaling $13,213,036 secured by motorcycles.
The performance metrics of these loans were analyzed for 2 years. The analysis took into account the consumer profile, asset class, payment history and obligation.
The results were that the originator had done a stellar job in ensuring the underwriting guideline’s and that performance standards met it’s 15 years of experience with investment payout obligations.
At the start of 2022, AltDirect began the process of acquiring this Fund. This included a deep due diligence process, a market overview and what the long term needs of this fund would be.
As of May 23rd, 2022, AltDirect began it’s Rule C offering for units in this fund. The notes are expected to fully repay within 34 months and will pay 10% in simple interest per annum, paid quarterly.
