The European Crowdlending Fund

Contribute to FinTech evolution!

The European Crowdlending Fund (ECF) - 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.

Diversification

30+ thousand loans. The majority of the portfolio is protected by buyback guarantees from loan originators and pledged collateral.

Liquidity

Low correlation with traditional asset classes (shares, real estate, etc.) and relatively active secondary market for a quick exit.

Effectiveness

Low fund management costs and niche funding lead to higher profitability to risk ratio.

Date:

2019-10-31

Net asset value:

15 595 591.32 EUR

Class A share price:

131.2325 EUR

Class B share price:

127.9168 EUR

Change of Class B share price

 
January
February
March
April
May
June
July
August
September
October
November
December
YTD*
2019
0.77%
0.76%
0.64%
0.68%
0.69%
0.68%
0.80%
0.64%
0.75%
0.64%
-
-
+7.28%
2018
0.79%
0.69%
0.74%
0.73%
0.71%
0.49%
0.68%
0.68%
0.68%
0.8%
0.77%
0.86%
+8.97%
2017
0.46%
0.64%
0.67%
0.48%
0.76%
0.71%
0.80%
0.80%
0.75%
0.77%
0.78%
0.72%
+8.66%
2016
-
-
-
-
-
-
-
-
-
0.03%
0.27%
0.40%
+0.71%
*Year to date

Capital
employed

95%

Number of loans
in portfolio

18095

Average loan
amount (€)

802

Average loan
term (months)

14

Funded loans (€)

44.1 mln.

Portfolio diversification

Countries

Lithuania: 68%
Poland: 14%
Estonia: 6%
Latvia: 5%
Others: 7%

Platforms

Lenndy: 42%
Mintos: 9%
EstateGuru: 7%
PeerBerry: 5%
Viainvest: 4%
Iuvo Group: 1%
Bulkestate: 1%
Bonds: 8%
Direct loans: 23%

Loan types

Business loan with mortgage: 29%
Other business loans: 21%
Personal loans: 17%
Business car lease: 13%
Real estate development: 8%
Forest purchase financing: 6%
Personal car lease: 5%
Invoice financing: 1%

Collateral

Real estate / vehicle collateral: 42%
Buyback guarantee: 37%
Receivables (invoice): 14%
Unsecured loans: 7%

Loan term

1-3 months: 38%
4-6 months: 9%
6-12 months: 17%
12-24 months: 36%

Yield distribution

10-12%: 10%
12-14%: 59%
14+%: 31%

Strategy

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.

ECF target niches and products

Business lending

Invoice financing
Equipment and transport lease
Start-up funding with pledged real estate
Short-term bonds

Real estate development projects

Renovation funding
Commercial real estate development
Bridge financing
Profit-sharing real estate development

Individual solutions

Trade contract funding
Convertible bonds
Consumer loans with collateral
Loan syndication

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.

Platforms Selection Guidelines

Analysis of Financial Backing and Reputation

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.

Assessment of the Existing Legal Framework

We check whether the platform is supervised by relevant supervision authorities. We perform legal inspection of the gaps by revising all documentation, such as loan agreements, terms and conditions, privacy policy, anti-money laundering policy, taxing structure and others.

Risk Management and IT Security Assessment

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.

Cash Management Review

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.

Niche Selection Guidelines

Portfolio allocation selection process is performed on a monthly basis. We select allocation targets based on confirmed internal guidelines. Main criteria for consideration are:

  • Guarantor and its reliability;
  • Instrument maturity and profitability;
  • Operator's reputation and credibility;
  • Product conditions and liquidity.

The financial instruments monitoring model is continuously improved with regard to the portfolio performance, as well as using the experience analysis.

News

Our Team

Dr. Lukas Macijauskas

Fund manager

Arturas Milevskis

Member of the Board

Audrius

Audrius Bagdonas

Platforms analyst

Tadas

Tadas Krivickas

Loan analyst

Contact Us

P. Lukšio g. 32, 6 aukštas LT-08222 Vilnius, Lietuva

+370 671 14450

info@synergy-finance.com

www.synergy-finance.com

Documents

Prospectus

2018 Financial Statements Independent Auditors Report

2018 Financial report

2018 Annual report

2017 Financial report

2017 Annual report

Contact Us!

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.”

Who can invest?

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:

  • Possessing private (or joint ownership) net assets that are worth no less than 250,000 €;
  • Possessing personal financial assets, settlement of the related obligations, worth no less than 150,000 €;
  • The annual income has been no less than 50,000 € (with spouse – € 75,000) in the last two years, and there is no reason to believe that it should decline in the current year.

Legal entities who confirmed their informed investor status can make investments starting from 125,000 €.

Professional investor:

  • Licensed financial market participants;
  • Large companies;
  • Individuals recognized as professional investors;
  • Other institutional investors.