EV3's Credit Letter, Part 2

Today, we are publishing part 2 of a 5-part research series on Onchain Credit.

We have spent our entire careers advising and investing in lending businesses. At GS, we advised on the IPO of Owl Rock's first BDC. At Ribbit, we helped back lenders like Affirm’s and Parafin's venture rounds. At Apollo, we worked on structured credit deals with national lenders like Figure. Over the years we've learned a few patterns about what makes a great lending business and the challenges to scaling them.

In part 2 of our onchain credit letter, we discuss the business physics of lending and walk through an illustrative example showing the challenges that every lending business faces, and very few make it past.

Read the full letter on our website: https://ev3.xyz/research/EV3-Credit-Letter-Part-2.pdf