Theorem Partners
Investment manager in the marketplace lending space.
| Date | Investors | Amount | Round |
|---|---|---|---|
| investor investor investor investor investor investor | €0.0 | round | |
| investor | €0.0 | round | |
* | N/A | Acquisition | |
| Total Funding | 000k | ||
| USD | 2019 | 2020 | 2021 | 2022 | 2023 |
|---|---|---|---|---|---|
| Revenues | 0000 | 0000 | 0000 | 0000 | 0000 |
| % growth | - | 13 % | - | 103 % | 25 % |
| EBITDA | 0000 | 0000 | 0000 | 0000 | 0000 |
| Profit | 0000 | 0000 | 0000 | 0000 | 0000 |
| EV | 0000 | 0000 | 0000 | 0000 | 0000 |
| EV / revenue | 00.0x | 00.0x | 00.0x | 00.0x | 00.0x |
| EV / EBITDA | 00.0x | 00.0x | 00.0x | 00.0x | 00.0x |
| R&D budget | 0000 | 0000 | 0000 | 0000 | 0000 |
Source: Dealroom estimates
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Theorem Marketplace Lending is a specialized investment firm that leverages advanced data science and machine learning to identify and invest in top-performing loans from online lenders. Founded in 2013 by Hugh Edmundson and Abeer Agrawal, Theorem has grown to manage over $1 billion in assets for a diverse range of clients, including endowments, foundations, sovereign wealth funds, pensions, healthcare organizations, insurance companies, and family offices.
The company's core business revolves around marketplace lending, a sector where loans are originated by online platforms rather than traditional banks. Theorem uses sophisticated algorithms and statistical models to analyze vast amounts of data, aiming to pinpoint loans with the highest likelihood of repayment. This approach combines quantitative data analysis with qualitative credit insights to enhance the accuracy of credit pricing decisions.
Theorem's business model is built on generating strong, short-duration yields for its investors across various economic cycles. By focusing on loans that are statistically more likely to be repaid, such as wedding loans over business loans, Theorem aims to minimize default risks and maximize returns. For instance, their research indicates that wedding loans are 10% more likely to be repaid than business loans, due to the financial stability often associated with marriage.
The company makes money by managing investment funds that pool capital from its clients to invest in these carefully selected loans. Theorem charges management fees and performance fees based on the returns generated by these investments.
In summary, Theorem Marketplace Lending stands out in the financial sector by using cutting-edge technology to make informed investment decisions in the marketplace lending space, providing robust returns for a wide array of institutional investors.
Keywords: Data Science, Machine Learning, Marketplace Lending, Investment, Loans, Credit Analysis, Online Lenders, Asset Management, Financial Stability, Risk Mitigation.