Debt capital: Investing in loans from Swiss SMEs
With a new investment product, Vicenda and creditworld are offering Swiss SMEs an additional financing option and institutional investors an interesting investment alternative in the persistently low interest rate environment, according to a statement.
Banks are restricting their lending for regulatory reasons. This opens the doors for alternative financing options, such as via crowdlending platforms. In this environment, Vicenda and creditworld are now expanding their offering for SMEs to obtain debt capital "unbureaucratically and securely," as it says in a media release. Furthermore, the new investment product offers institutional investors an interesting alternative in the area of fixed-interest investments in the current low-interest environment.
Commitments already for more than CHF 40 million
According to their own statements, Vicenda and creditworld are aiming for an investment volume of CHF 100 million, which will be passed on in tranches of CHF 100,000 to CHF 10 million to Swiss companies from all industries with sales of CHF 0.5 to 30 million in the form of investment and working capital loans. Investors have already committed for more than CHF 40 million, the two companies said. A gross return of 5 percent is targeted for investors. The minimum investment is CHF 150,000.
Closing the credit gap with institutional debt financing
Daniel Franc, Head of Asset Management Solutions at Vicenda, can be quoted as follows: "Private debt investments are an interesting investment opportunity for institutional investors. Our product is particularly interesting for pension funds because of its attractive risk-return profile and its link to Switzerland. We offer a simple and safe way to invest in a diversified portfolio of Swiss SME loans." And Philipp Schneider, co-founder of creditworld AG, adds: "Banks are increasingly restricted in their lending to SMEs. We can close the emerging credit gap with private and institutional debt financing. In addition, as a fintech company, the lending process can be implemented quickly and efficiently thanks to digitalized processing."
International investment fund in the background
Vicenda is responsible for the lending decision and the structuring and monitoring of the portfolio. creditworld is responsible for the identification and, in cooperation with its rating partner Euler Hermes, also for the assessment of the loans. Vicenda's Luxembourg-based securitization platform, Thalos Investment Platform S.A. Luxembourg, with SME Credit Finance Compartment I, serves as the vehicle for issuing the corresponding securities. Back in December, Vicenda and partners launched the Daneo Private Debt Fund. The Daneo Private Debt Fund brings together credit-seeking companies in Switzerland, Germany and Austria and institutional investors through an investment fund.
www.vicenda.com / www.creditworld.ch
