Synergy European Crowdlending Fund - the first open-end investment fund established in the Baltics. ECF enables informed investors to participate in unique and fast-growing crowdfunding and loan markets. The fund directly contributes to the development of alternative lending sector in Europe through target companies. We aim to form a very broad diversification of the loan portfolio with an annual return for investors reaching up to 8-10% per annum.
30+ thousand loans. The majority of the portfolio is protected by buyback guarantees from loan originators and pledged collateral.
Low correlation with traditional asset classes (shares, real estate, etc.) and relatively active secondary market for a quick exit.
Low fund management costs and niche funding lead to higher profitability to risk ratio.
Number of loans
Funded loans (€)
Through the special purpose funding companies and by using crowdfunding platforms (in some cases - directly), European Crowdlending Fund forms a particularly widely diversified loan portfolio. Depending on market conditions fund can hold up to 100 thousand different investments, the largest of them not exceeding 10 percent of the total portfolio value. This broad diversification will minimize non-systemic risk and potential errors in investment selection algorithm.
Projects of higher value can be funded directly (direct involvement, better risk assessment, greater transparency), while smaller amounts of funding go through existing crowdfunding platforms and lending marketplaces. The target company cannot provide direct loans to individuals, however, part of the investment may be directed to the sector through P2P platforms.
ANALYSIS OF FINANCIAL BACKING AND REPUTATION – We assess whether the platform obtained capital from shareholders or from outside investors like venture capitalists, business angels or other sources. We assess all related companies and partners (loan originators) and perform periodic valuation of key indicators, news and results. We take into consideration all public information, responses found in investment forums and reports of licensed audit company auditing the platforms.
Financial statements are reviewed quarterly. Analysis of credit risk assessment and platform prospects in case of unexpected events is done annually. Moreover, we monitor total portfolio of the platform, secondary market liquidity, IT security, SSL certificates and GDPR policies.
Platforms use several different money management methods. We asses viability and security for each method and take it into consideration when making portfolio allocations.
The assessment of the sustainability of potential financing platforms is carried out periodically. Depending on the situation, or to changes in market circumstances, some platforms may be deleted from the monitoring list, while others - added.
Portfolio allocation selection process is performed on a monthly basis. We select allocation targets based on confirmed internal guidelines. Main criteria for consideration are:
The financial instruments monitoring model is continuously improved with regard to the portfolio performance, as well as using the experience analysis.
UAB Synergy Finance (“Company”) is a licensed management company supervised by the Bank of Lithuania. The company is not responsible and does not assume liability for the investment results of other persons. The indicators or other material mentioned in this website is for informational purposes only and should not be seen as an invitation or an offer to buy or sell a specific financial measures. It can not be a basis for any deal or part thereof. Investment returns are linked to the investment risk. The value of investments may increase as well as decrease. The Company does not warrant that the investment results provided in this website will recur in the future. Before investing it is necessary to carefully sort out the fund’s investment objectives, risks, which costs are incurred by the fund and what are the charges. It is not recommended to accept investment decisions based solely on the information provided on this website. In all cases, in order to determine the fund’s suitability and acceptability, it is necessary to personally review all available information, or consult with a licensed investment adviser.”
Minimum investment for individuals who have been approved as informed investors is € 10,000. The person must meet at least one of the following criteria:
Legal entities who confirmed their informed investor status can make investments starting from 125,000 €.