Prime Meridian Capital Management

What Prime Meridian Capital Management does

Prime Meridian Capital Management is a privately held, tech-empowered alternative credit investment manager founded in 2012 in Walnut Creek, California. The firm operates a suite of private credit funds — the Income Fund (consumer, real estate, and specialty credit), the Special Opportunities Fund (litigation finance, life settlements, and specialty credit), and the NPL Fund (non-performing residential mortgage loans) — having previously offered a Small Business Lending Fund. Since inception the firm's funds have deployed $1.8B into loans and specialty credit, sourced primarily through US-based peer-to-peer and marketplace lending platforms, and the firm uses proprietary AI and machine learning software along with automated execution algorithms to screen, price, and invest in loans in near real time.

The firm targets accredited investors exclusively — high-net-worth individuals, family offices, multi-family offices, institutional investors (pensions and endowments), and wealth managers — distributing fund interests through direct sales under Regulation D Rule 501, with fact sheets available on request. Revenue is generated through standard fund economics (1% management fee and 20% performance fee on the Special Opportunities Fund, with similar structures on other funds), supplemented by co-investment opportunities. The firm operates as an affiliate of Novus Investments, is led by co-founders Don Davis (CEO) and Val Katayev (Managing Partner), and has received industry recognition including Hedgeweek US Credit Awards (2022, 2023), LendIt Top Fund Manager (2017), and inclusion in the HFRI 500 and HFRI 400 (US) Investable Indices.

The firm is small (1-10 employees) with the investment team claiming over 100 years of collective credit experience. Distribution combines direct sales-led outreach with content marketing (insights blog, podcast appearances, industry conference participation) and a 2023 marketing-support partnership with Eolas Capital.

Name

Prime Meridian Capital Management

Legal name

Prime Meridian Capital Management

Website

https://pmifunds.com

Company type

Private

Founded year

2012

Operating status

Operating

Headcount range

1–10 employees

Short description

Prime Meridian Capital Management is a Walnut Creek-based, tech-empowered private credit fund manager founded in 2012 that runs short-duration, high-yield alternative credit strategies for accredited investors, family offices, and institutional clients, deploying AI/ML-driven loan selection across consumer, real estate, and specialty credit.

Ownership category

akta.pro rank

Product category

Alternative Credit Fund Management

NAICS

Portfolio Management and Investment Advice (523940)

SIC

Investment Advice (6282)

akta.pro primary industry

Private Credit / Direct Lending (FSAAAHAG)

akta.pro secondary industry

Middle-Market Lending (FSANADAI)

Keywords

• Private credit funds
• Alternative credit management
• Marketplace lending
• Specialty credit investing
• Peer-to-peer lending

Headquarters

HQ city

Reno

HQ country

United States

HQ region

North America

Offices2 records

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Technology or R&D, Operations, Marketing or Sales, Infrastructure

Revenue model

1. Investment Management Fees: Prime Meridian charges management fees and performance fees (carried interest) on fund assets under management. The firm operates multiple alternative credit funds with standard fund fee structures including 1% management fee and 20% performance fee for the Special Opportunities Fund.
2. Fund Performance Returns: The firm generates returns through lending investment activities across consumer lending, real estate lending, litigation finance, life settlements, and specialty credit verticals, with the spread between cost of capital and loan yields contributing to fund performance and management economics.

Pricing tiers

Go-to-market motion2 records

Distribution channels2 records

Marketing channels6 records

Core offering

Prime Meridian Capital Management is a tech-empowered alternative credit manager that operates multiple private credit funds targeting accredited investors. The firm invests across consumer lending, small business lending, secured real estate lending, litigation finance, life settlements, and non-performing residential mortgage loans, using proprietary AI/ML-driven algorithms for loan selection and portfolio construction. Since 2012, the firm has funded $1.8 billion in loans and specialty credit through its Income Fund, Special Opportunities Fund, NPL Fund, and previously a Small Business Lending Fund.

Product overview

Prime Meridian Capital Management is a tech-empowered alternative credit manager offering a suite of private credit funds focused on short-duration, high-yield lending. The firm operates three core funds: the Income Fund (investing in consumer lending, real estate lending, and specialty credit), the Special Opportunities Fund (focused on litigation finance, life settlements, and niche opportunities), and the NPL Fund (acquiring non-performing mortgage loans). Previously operated a Small Business Lending Fund. The firm uses proprietary AI and machine learning technology for loan selection and portfolio analytics. Co-investment opportunities are available across all strategies.

Differentiator

Problem solved

Functional benefit

Products and services

• Prime Meridian Income Fund A private credit fund investing in consumer lending, real estate lending, and specialty credit using data analytics to identify risk/reward opportunities based on current market conditions. Targets accredited investors with multi-year fund commitments.
• Prime Meridian Special Opportunities Fund A short-duration portfolio of loans investing in litigation finance, life settlements, and specialty finance/niche opportunities targeting 9-10% net returns with low correlation to other asset classes. Targets accredited investors via 1-and-20 fee structure.
• Prime Meridian NPL Fund A fund that acquires and manages non-performing mortgage loans and loan portfolios secured by residential real estate, primarily in judicial foreclosure states, executing work-out strategies including litigation, foreclosure, and negotiated settlements for portfolio diversification.
• Prime Meridian Small Business Lending Fund A fund investing in P2P collateralized small business loans backed by prime and super prime personal guarantees, providing access to the growing small business lending sector.
• Co-Investment Opportunities Co-investment opportunities available across Prime Meridian's suite of strategies, allowing investors to participate alongside the main funds in specific lending opportunities.

Quantifiable outcome

• $1.8 billion in loans and specialty credit funded since inception
• +4 more outcomes

Named customers5 records

Segments4 records

Ideal customer profiles4 records

Technology focussed Yes

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

AI capability5 records

Feature3 records

Partnerships

One partnership is on record.

• Eolas CapitalsupportingGTM or Marketing Partner · 29 June 2023Eolas Capital, a registered investment adviser, incubator, and provider of business solutions to asset and wealth managers, entered into an agreement to provide marketing support to Prime Meridian Capital Management. Eolas Capital specializes in business solutions for asset and wealth management firms.

Scale indicators9 records

Recent moves9 records

Expansion highlights5 records

Broad incumbents

• Prosper Marketplace: Pioneering P2P consumer lending platform where Prime Meridian's Managing Partner Val Katayev was among the earliest lenders; remains a primary loan-origination source that PMCM's Income Fund invests in.
• LendingClub: Originally a leading P2P consumer lending marketplace that Prime Meridian invests through; now operates as a digital bank but remains a foundational infrastructure provider for the consumer credit vertical PMCM's Income Fund sources loans from.
• Ares Management (Ares Credit Group): Large-scale alternative asset manager with a major private credit/direct lending franchise serving institutional investors; comparable to PMCM as a competing allocator capital in the same asset class, though at vastly greater scale.
• BlackRock Private Credit / Eligo (KKR): Mega-asset managers building private credit platforms (e.g., BlackRock's credit franchise and KKR's Eligo) targeting wealth-channel accredited investors; represent the deepening institutional competition that PMCM must differentiate against.
• Sixth Street Partners: Global investment firm with a sizable private credit and specialty finance practice investing across consumer, asset-based, and real estate credit — directly competes for institutional capital allocation against PMCM's fund-of-strategies offering.

Direct peers

• Yieldstreet: Tech-driven alternative investment platform offering access to private credit and specialty income products (litigation, real estate) to accredited investors — overlapping directly with PMCM's multi-strategy alt credit approach and accredited-investor distribution model.
• Percent (and previously PeerStreet for real estate): Access platform enabling accredited investors to invest in short-duration, high-yield private credit deals (notably real estate-backed notes) — overlapping with PMCM's short-duration, high-yield real estate lending and Special Opportunities strategies.
• AngelList (AngelList Credit): Operates rolling funds and separately managed accounts in startup and marketplace lending alternatives offered to accredited investors — directly comparable to PMCM in offering accredited-investor access to private credit vehicles.

Emerging players

• AlphaFlow: Tech-enabled platform aggregating private real estate and consumer credit deals for institutional and family office investors — comparable tech-empowered alt credit distribution model targeting the same accredited-investor base as Prime Meridian.
• Octane Lending / Avant (consumer specialty credit platforms): Specialty consumer credit fintechs (power sports, online consumer installment lending) that PMCM's Income Fund invests in via marketplace channels; partial-overlap as origination sources for PMCM's portfolio.

Market position

Strengths4 records

Weaknesses4 records

Competitive moat5 records

Key risks5 records

Key highlights6 records

Customer concentration

• Xx.com/pmifunds
• LinkedInlinkedin.com/company/prime-meridian

Revenue estimate

Valuation estimate

Number of profiles

Profiles10 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Prime Meridian Capital Management