Privlo, a nonconforming residential mortgage lender in Los Angeles, has raised $350 million in debt and $3.8 million in equity to help the company’s overall growth.
The debt transaction included an unnamed New York-based private real estate investment fund, Privlo said. Meanwhile, the startup company that has originated over $28 million of mortgage loans since its inception four years ago obtained $3.8 million in equity from Spark Capital and QED Investors.
All of this financing will enable Privlo to expand its services by the beginning of 2015 to provide private origination of residential mortgages in 17 states, according to a press release issued on Tuesday.
Privlo was launched in 2010 as a peer-to-peer lending platform, but now focuses on providing mortgages to borrowers who are not eligible for traditional bank loans. The company conducted a trial in Idaho where it issued $27 million across 103 loans to lure potential investors.
“We wanted to be a little eye-popping securing this commitment to show we are in business,” said Michael Slavin, Privlo founder in a press release on Tuesday. “It is a huge commitment to a company just getting out of the base, though.”
Middlemarch Partners served as an adviser for the debt offering.