The European Investment Fund supports Estateguru in the launch of a new credit fund

By Joy Dumasia


real estate guru, a pioneer in online financing for SMEs (small and medium-sized enterprises) in Europe, is preparing to launch a diversified credit fund for institutional investors. The European Investment Fund (EIF) is committed to being an anchor investor, using the resources of the European Guarantee Fund set up to ensure that Europe’s small and medium-sized enterprises have sufficient financing to mitigate the economic impact of the COVID-19 crisis and can continue their growth and development.

The Estateguru Senior Secured Credit Fund will provide European SMEs with senior financing through the Estateguru online lending platform. The fund will focus geographically mainly on Estonia, Latvia, Lithuania, Finland and Germany. The fund is a closed-end private debt fund (7+1 years) aimed at qualified investors wishing to gain exposure to this asset class. The first closing of the fund is expected towards the end of the second quarter of 2022.

Judith Tan, Head of Capital Markets at Estateguru, said: “With this fund, we are creating an attractive opportunity for institutional investors. It will give them access to the underserved European SME mortgage market estimated at €400 billion. Digital lending platforms like Estateguru are able to serve this market more efficiently than traditional lenders and gain market share quickly, while delivering a good return for secured senior risk to investors.

Alain Godard, Managing Director of the European Investment Fund said: “With the backing of the Pan-European Guarantee Fund, we are delighted to back Estateguru, a fast-growing market lender which aims to provide fast and flexible financing to businesses in the Baltics, Finland and Germany. The small size of the target companies means that loan amounts are also small, so SMEs have limited appeal for traditional banks and need alternative sources of finance. Supporting them is essential to overcome the current crisis caused by the pandemic. »

Recently, IBS Intelligence reported that Estateguru Marketplace Limited, the property investment and finance platform, announced the opening of its first office in Manchester. It plans to start facilitating loans once the FCA has been fully approved.

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