Diamond Fund

LendingRobot Diamond Fund — investments secured by diamonds and exclusive jewelry**
return up to 10%* per year
*10% is LRD target income. Income for 08.2021 - 08.2022 = 8.43%. You may earn more, less, or lose money using these strategies.

** Loans are issued against the security of jewelry or its components.
Min amount
$25K

About

The LendingRobot Series LRD (Diamond Finance) Fund is operated by LendingRobot LLC, a private investment company with expertise in Global Alternative Fixed Income investments. Having been a pioneer in the Peer-to-Peer (P2P) space for the past decade, the company now manages a Series fund and other private investments focused on alternative credit and lending.

The Series LRD Fund is designed to address the lending gap left by commercial banks in the middle market segment for high-end diamond and jewelry companies. Through its partners( Delgatto Diamond Finace Fund (DDFF)), the Fund aims to provide lending solutions to these companies in the face of tightening capital restrictions.

How it works

Diversification
The Series LRD Fund offers investors an opportunity for diversification away from traditional stocks and bonds.
Collateralized
Benefit
It focuses on collateralized loans in the high-end diamond and jewelry industry, aiming to provide competitive returns in line with alternative Fixed Income products.
Investors can benefit from monthly liquidity without a lockup period, with the flexibility to request withdrawals upon providing a 90-day notice.

Why invest?

Diversification
Fixed Income
Collateralized loans
Alternative avenue
The Series LRD Fund is tailored for investors seeking diversification beyond traditional investment options like stocks and bonds.
Additionally, the Fund aims to generate returns comparable to alternative Fixed Income products.
Fund offers the security of collateralized loans, which can be appealing for risk-conscious investors.
Given the shifting dynamics in the lending landscape and the potential opportunities in the high-end diamond and jewelry industry, the Fund presents an alternative avenue for investment.

LRD Historical return vs Major Fix Income funds

Terms

mANAGEMENT FEE
1%
annually, based on assets under management as of the end of each month
CHARGE FOR Any profit made over the 7% Hurdle Rate, calculated and paid monthly
Investment period
Terms are for less then 1 year and often only 6 months.
Income rate
Safety
Hurdle Rate* 7%;
Target Rate 10%
Yearly income
Calculated monthly
Gems are stored in third party secure location.
Volatility
Targeting GIA certified polished diamonds , which historically have had limited price volatility.
Redemption
Monthly with 90 days' notice.

Our partners

General Risks:

Operating Expenses and Profitability
Limited Liquidity
Indemnification and Exculpation
Dependency on General Partner
The Fund is obligated to cover various expenses regardless of its profitability, potentially impacting its financial health.
Lack of a market for Interests in DDFF means the Fund might struggle to liquidate investments promptly, especially during emergencies.
The Fund's ability to recover losses or costs from DDFF might be limited due to indemnification and exculpation provisions in the operating agreements.
The Fund's performance is tied to the capabilities and decisions of the General Partner of DDFF. If the partnership is disrupted, it could negatively affect the Fund.

Specific Risks

Strategic Risks:

a. Market Liquidity: The Fund's reliance on properly functioning markets might expose it to losses during times of impaired liquidity and disrupted pricing mechanisms.
b. Appraisal Models: Failure of the Fund's appraisal models could lead to losses on acquired assets/inventory, and all investments are subject to market value fluctuations.
c. Leverage: The Fund's borrowing practices might result in losses exceeding its capital due to potential leverage-related risks.
Financial Institution Risks: The Fund's operations and capital could be impacted if financial institutions with which DDFF interacts encounter financial difficulties.
DDFF-specific Risks: The Fund's performance could suffer if DDFF faces financial difficulties, affecting its operational capabilities and capital position.
Industry-specific Risks:

a. Lab-Grown Diamonds: The growing presence of lab-grown diamonds might impact the traditional diamond market, affecting margins and pricing.
b. Transparency: Although transparency is improving, there's uncertainty in the adoption and effectiveness of technologies like blockchain for enhancing transparency.
c. Midstream Financing: Risks associated with midstream financing include consumer demand fluctuations, credit risk, brand awareness, and challenges in collateral valuation and liquidity.
d. New Financing Models: Adoption of new financing models in the midstream might face resistance and challenges.
e. Partnership Opportunities: While there are opportunities for partnerships with banks and strong financing demand, there's also the challenge of execution and industry expertise.

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