Fintex enters US consumer loan market with a Pass-Through Securitisation

London / Luxembourg, June 2018

  • Bonds issued in a Pass-Through Securitisation backed by consumer loans originated via leading US consumer credit platform
  • Fintex Capital has now issued more than $125 million in bonds across 3 different lending strategies

Fintex Capital, an institutional investment and asset management firm dedicated to alternative credit, is pleased to announce the successful launch of its US Consumer Lending strategy, known as Fintex Elevator. Within this lending strategy, Fintex Capital started purchasing US consumer loans originated via a leading US consumer credit marketplace last month.

As part of this investment, Fintex Capital SA, the Fintex group’s Luxembourg-based proprietary securitisation vehicle, issued a $30 million initial tranche of bonds in a Pass-Through Securitisation – the first of its kind.

The chosen investment platform focuses exclusively on US consumer credit and helps US consumers to both understand their credit and unlock their credit potential.

Fintex Capital structured the bond as a pass-through security, creating a direct link to the discrete, revolving portfolio of underlying whole loans. Fintex Bonds are capital markets-friendly instruments; they carry an ISIN and are settled through Euroclear and Clearstream. Fintex Capital established robust processes for turnkey, repeat bond issuance eliminating time-consuming administrative processes and complex documentation and dramatically accelerating time to market. Having launched its first proprietary product in 2016, Fintex Capital to date has issued bonds for in excess of $125 million. To asset manage its sizeable loan portfolios, Fintex employs a highly specialised credit team as well as proprietary technology developed specifically for large, diversified portfolios of consumer loans.

Robert Stafler, CEO and Co-Founder of Fintex, said: “We set up Fintex Capital in 2016 intending to launch one new credit strategy each year. Having successfully established our German consumer lending strategy in 2016, we launched our UK real estate lending product in 2017. I am now pleased to note that our third lending strategy, US consumer loans, was launched early in 2018. Our portfolio now comprises attractively priced, proprietary credit strategies in the world’s 3 major currencies – EUR, GBP and USD. This makes Fintex directly relevant to every institution interested in alternative credit.”

Sophie Batoua, Fintex Capital’s Chief Investment Officer added: “The Fintex investment strategy stands on 3 pillars. First, turnkey bond issuance: our proven ability to wrap unwieldy loan portfolios in simple bespoke bonds, making complex private credit investments hassle-free for institutional investors. Secondly, a top-notch team: combining deep credit expertise with principal investment and asset management experience and a thorough understanding of capital markets. Thirdly, our ability to develop sophisticated, proprietary risk management technology, tailor-made to fit the credit strategies we invest in; they enable us to keep a finger on the pulse of each portfolio. This combination is immensely powerful.”

 

Contacts

Robert Stafler / Sophie Batoua
Fintex Partners
10a Chandos Street, London W1G 9DQ
Tel.: +44 20 3008 6870
www.fintexcap.com

Notes to Editors

About Fintex Capital

Fintex Capital transforms the way institutional investors access alternative credit

Founded by Robert Stafler and Jérôme Anglade in 2015, Fintex Capital is exclusively dedicated to alternative credit. Fintex Capital’s team has years of investment experience and an in-depth understanding of structured credit, securitisations, real estate, SME and consumer finance. Fintex was created to originate, structure and manage bespoke fixed income portfolios for large investors with an institutional mindset. The aim is to deliver capital preservation, consistent income and superior risk-adjusted returns wrapped in a hassle-free investment and customer experience.

Leveraging its team’s deep experience in capital markets and an innovative approach to credit and technology, Fintex Capital is well placed to continue and create sustainable, low risk, low volatility lending products which offer attractive yields to institutional investors in the prevailing low interest rate environment. As an innovative risk and asset manager, Fintex Capital received several industry awards and recognitions.

A growing pool of institutional investors recognises that carefully structured alternative credit investments offer attractive returns. With this in mind, Fintex Capital purchases and asset manages sizeable portfolios of loans to enable institutional investors – banks, pension funds, insurance companies and asset managers – to gain direct exposure to the underlying loans. Fintex Capital is highly selective of the strategies and originators it on-boards and our team works closely with all of them. This way, our institutional customers benefit from direct and privileged access to market-leading originators within sustainable segments of the alternative credit arena.

 

How Fintex Capital works

Fintex Capital purchases sizeable portfolios of whole loans originated by market-leading originators, as principal. To finance these, our customers – large asset managers, banks, insurance companies or pension funds – purchase tailor-made bonds issued by Fintex Capital. These are backed by the underlying loan portfolios and the investments are ringfenced as well as insolvency-remote.

Fintex Bonds are cost efficient and capital markets-friendly. They carry an ISIN and are settled through Euroclear and Clearstream thereby eliminating time-consuming processes. Fintex bonds benefit from standardised documentation and reduce transaction costs to a minimum. As risk and asset manager of the underlying loans and as a repeat issuer of bonds, the firm’s set-up is tried and tested.  This ensures that our thorough, professional investment processes are wrapped in turnkey bond issuance to achieve a remarkably short time to market. Our processes enable meaningful capital to be deployed quickly in a well-managed, hassle-free manner, while keeping cash drag low and ensuring disciplined risk management processes and controls remain in place at all times.

At the core of every Fintex proposition lies custom-made technology. The firm’s centralised risk management tools enable our highly specialised team of credit professionals to track the performance of each loan and each portfolio. Leveraging proprietary technology, Fintex Capital provides sophisticated monitoring, reporting, valuations and projections for each portfolio to a top-class standard.

Capitalising on the size and maturity of the $1 trillion US consumer loan market, Fintex Capital intends to facilitate the deployment of larger sums of capital. Direct access to significant origination means we can now deploy institutional capital in amounts previously not available within Fintex Capital’s existing strategies.