HOUSE OF FUNDS

PINEAPPLE FUNDS

ABOUT

The general partner – PINEAPPLE GP Ltd. was established in 2018. The funds will begin making investments in the Second quarter of 2019 and will serve mostly institutional clients. The fund will invest in on-line platforms that operate in the alternative lending marketplace, while maintaining geographical distribution (the United States and Europe) and sectoral diversification. The fund’s managers are high professionals with a relevant experience in the capital markets, Risk management and the online lending marketplace. That enables the fund to be managed in a controlled and conservative manner and in accordance with the risk appetite of the institutional firms in Israel.

ASSET CLASS

Investment in platforms (SME, Consumer, Real Estate), which constitute an additional investment channel with low volatility and low correlation to the capital markets. In recent years, the area of ​​consumer loans based on P2P platforms has become a legitimate and acceptable asset class for institutional investors. Since the consumer lending channel has been around for the last decade and is not considered as innovative as the other online credit channels, and due to the fact that the credit card companies increased their presence in the consumer lending field since 2016, the real yields on these loans have declined over the years. In recent years we have seen the development and expansion of P2P Lending platforms to other fields besides consumer lending which created of a diverted alternative non-banking market place.

TECHNOLOGY

The Pineapple Fund works in partnership with NSR Invest, the largest MPL investment consulting firm in the United States. NSR Invest is using the world’s largest machine learning system (LR-Lending Robot) which identifies the most attractive loans on the platforms using unique technology and data analysis. Besides the electronic analytic tools, the company interfaces to leading platforms in the world and in various content worlds, including consumer loans. The company is working with leading consumer lending platforms and other investment channels such as SME finance, Property lending and Specialty lending.

PINEAPPLE FUND - USA

The fund will invest in online lending platforms, including the Consumer Lending field, which has proven itself in recent years as a low-risk area with a sufficient return. In accordance with its investment policy, the fund will combine 25% -75% of the total investments in established platforms that offer other credit, in order to diversify the investments and reduce the correlation to the capital markets. The fund will try to achieve decent returns using a conservative strategy with low volatility. This will be done in cooperation with NSR Invest, which will assist in managing the investments based on Data Analysis and Machine Learning.

PINEAPPLE FUND - EUROPE

The fund will make investments in Europe in the Market Place Lending area. As of today, most of the investments made by other funds in this area focus on consumer lending in the US market. After examining and learning carefully the European Market Place lending, the fund has located diverted online platforms which provide solid returns. The fund will invest only in online platforms in Europe which will be able to present sufficient track records. The fund will act in accordance with the investment policy, in order to diversify the investments (sectoral and geographic) and reduce the correlation to the capital markets. Thus, the fund is a solid investment channel, with an asset class that is accepted on one hand but still innovative on the other hand due to its European focus.