The evolving dynamics of international markets and the current geopolitical landscape underscore the importance of diversification as a strategy to mitigate risks for both businesses and investors.
Aventus Group has been actively pursuing diversification in recent years, expanding its presence into new markets. In addition to its enduring partnerships, the company has introduced investment opportunities in loans originating from Romania, the Czech Republic, Spain, Kenya, and India over the past year. Furthermore, the company is set to broaden its geographical footprint by adding investments in businesses from Mexico, Tanzania, Nigeria, Colombia, and South Africa in the near future. Arūnas Lekavičius, CEO of PeerBerry, has shared these forthcoming business plans.
A significant regulatory change in Poland is scheduled to take effect on January 1, 2024. Under this new regulation, Polish lenders will no longer be permitted to secure funding from investors through online platforms, as it will be in violation of the law. Consequently, this legal amendment will impact all platforms that facilitate investments in loans originating from Poland.
A. Lekavičius highlights the gravity of the situation, stating, “Any attempt to finance Polish lending enterprises through online platforms will jeopardize their licenses. The new Polish law dictates that all loan companies fall under the jurisdiction of the National Financial Supervision Authority. If any company seeks funding through a platform, it will be removed from the National Court Register and will be prohibited from conducting business.”
Aware of these impending regulatory changes, PeerBerry and its partners have been making preparations. Their Polish partners, who have a decade of successful business performance and substantial net profits in the tens of millions, are well-equipped to thrive without external funding. In recent months, these partners have been gradually decreasing their involvement on the PeerBerry platform. Presently, Polish loans account for 16.6% of the platform’s portfolio, equivalent to EUR 15.9 million. PeerBerry will continue to list Polish loans in small volumes; however, all outstanding Polish loans will be repaid to investors by the end of the year, and there will be no Polish loans available on the PeerBerry platform starting from January 1, 2024.
It is important to note that while this transition may temporarily impact the loan supply, PeerBerry’s partners operate diversified businesses, and the introduction of new lenders from Mexico, Tanzania, Nigeria, Colombia, and South Africa, along with the expansion into Sri Lanka, the Philippines, and Romania, will ensure a sustainable and diverse loan supply for investors. This will replace the outgoing Polish loans, providing investors with fresh opportunities for investment.
Furthermore, Polish lenders will continue to be part of the partners’ group guarantee structure, boasting stable businesses and solid profits, without any obligations towards investors. This enhances the group guarantee offered to PeerBerry investors.
To cater to the high demand on the PeerBerry platform, investors are encouraged to explore the option of diversifying their investments by considering Crowdpear, an EU-regulated platform holding an ECSP license and represented by the same team. On Crowdpear, investors can participate in property-backed real estate or business loans (primary mortgage), with the potential to earn up to 12% annual interest. Crowdpear also offers a Secondary market, and its activities are overseen by the Bank of Lithuania. Currently, Crowdpear has garnered the trust of 4,636 international investors and manages an investment portfolio exceeding EUR 3 million.
It’s noteworthy that both PeerBerry and Crowdpear share the same ownership structure, offering investors a sense of continuity and trust across both platforms.