Over the years we’ve participated in private deals originated by friends, family and acquaintances, ranging from property to art to luxury assets to personal and business loans to investment clubs in listed or regulated securities. In doing so, we (and people in our network who also have invested in such deals) experienced the administrative pain associated with manual, non-professional processes, heterogenous legal documents and payments risks impacting both the originators and the investors. We all have day jobs and have luckily done well enough to invest some spare money in decent opportunities but managing the day to day of those is painful (especially in the context of our professional lives).
These deals are also highly illiquid, despite their being a secondary market. If you’re Goldman Sachs and you want to syndicate $300 million of your $500 million bilateral loan, a few hundred thousand on legal fees is acceptable. However, if you’re just a regular person, who wants to participate or sell down $50,000 in your Menorca home, spending $10,00 on legal fees makes no sense.
Hence iHuddle! A digital solution that takes care of all the boring, time consuming and complex administrative steps for private deal originators, simplifies the investment process for club deal investors, and offers the ability to sell prior to maturity through a secondary market for minimal cost.