Guest author Andrew Steel is President of KC iFund, a valued WealthForge partner.
At KC iFund, we have spent much of the last year learning how online private placements have the ability to disrupt financial markets. We have discovered many groups and ideas that will certainly assist with the Fintech revolution and we are thrilled to be a part of this evolution in the marketplace. We believe that 2015 will be an unprecedented year for growth in the marketplace and decided to make some predictions of our own of what will have a significant effect in Fintech.
1. Increase of Market Portals
Portals and intermediaries focused on real estate opportunities will continue to expand in numbers and deal size. We expect to see portals open this year with regional and asset class specialization that will diversify the offerings available to the market, creating a robust, growing marketplace. KC iFund has opened its portal this year for investment opportunities and we will start announcing our strategic partnerships for rapidly expanding growth and diversification.
2. Increase in Mergers
We expect to see larger institutions investing in the marketplace and platforms will continue to develop new tools for the increasing confidence in the marketplace. Mergers of portals with smaller niche groups will occur creating some consolidation of the industry by those groups who are well capitalized. We expect investments from institutional groups to nearly double this year from an estimated $85 million invested last year, to over $150 million of investments in 2015 to support the growth of portals.
3. Market Expansion
The size of the market will expand rapidly this year to over $1 billion in private placement real estate transactions from portals and issuers. This includes debt and equity from private and institutional funding sources. Online private placements in real estate will align with many institutional funding sources to assist in the velocity of funding more quality opportunities.
4. Accredited Investor Definition Modified
This prediction is going out on a limb because it has been a hard fought battle with the SEC to modify this definition. This is also a difficult prediction because there is not a strong public opinion push for policy makers to spend political capital going after this fight. The mindset of this accreditation test, based solely on financial prowess, is too one dimensional to be plausible. While this is one area of suitability, academic and professional credentials are just as important for the investment process.
KC iFund has enabled investors to participate in their core business of acquiring, managing and trading a portfolio of cash flowing single family home mortgages throughout the US. Their strategic partnerships allow them access to highly exclusive opportunities only available through their online platform.
Securities offered through WealthForge, LLC. Member FINRA/SIPC. This post is an industry update from WealthForge. The message does not constitute a research report or recommendation and does not take into account the specific investment objectives, financial situation or particular needs of the recipient. This message is not an offer to sell or the solicitation of an offer to buy any security or interest in any fund, which only can be made through a private placement memorandum that contains important information about the risks, fees and expenses of a fund.
Disclaimer: WealthForge provides this information to our clients and other friends for educational purposes only. It should not be construed or relied upon as legal advice.
Disclaimer: WealthForge provides this information for educational purposes only. It should not be construed or relied upon as legal or tax advice.