US real estate investing platform PeerStreet files for Chapter 11 bankruptcy protection
US-based fintech PeerStreet, a platform for investing in real estate debt, has announced it has filed for Chapter 11 bankruptcy protection in a court in Delaware.
PeerStreet files for Chapter 11 bankruptcy protection
The petition was filed on 26 June and the final hearing on the case is expected on 28 July.
David Dunn from advisory firm Province has been appointed as the chief restructuring officer for PeerStreet. In court filings, Dunn cites adverse market conditions including increasing rates, reduced demand for mortgages, and a decline in venture capital funding as reasons behind the Chapter 11 filing.
As part of cost-saving and restructuring efforts, the company has conducted a series of layoffs over the last year, reducing its headcount from 281 in May 2022 to around 28 as of the petition date.
Founded in 2013 and headquartered in California, PeerStreet’s platform serves as a two-sided marketplace, offering investors access to real estate-related debt investments – an asset class that it calls “historically difficult to invest in” – and connecting lenders and borrowers to sources of capital.
Through its bankruptcy filing, PeerStreet says it aims to sell substantially all of its assets, including, but not limited to, its mortgage loan assets and technology platform, as the firm looks to “maximise value” for all of its stakeholders.
The company last raised $60 million in a Series C funding round led by Colchis Capital in 2019, with participation from existing investors Andreessen Horowitz, World Innovation Lab (which led its $29.5 million Series B round in 2018) and Thomvest Ventures.
