Great article on the challenges and opportunities of lending!
Matt Harris is a managing director at Bain Capital Ventures. Credit, private or public, is of greatest consequence to every country. Of this, it might be called the invigorating principle. -Alexander Hamilton So which is it? Is lending a good business, where moats and profit pools are durable and one can build billions in equity value … or is it an inevitable cash bonfire when the cycle turns? Is credit a critical lubricant for the economy, the more the better, or a creeping contagion to be limited, particularly in the “shadow” banking system? As someone who co-led the seed round in one of the first alternative lending companies (OnDeck), and went on to serve as Chairman, but who has not invested in a single lender since, I stand somewhat astraddle this issue.