Crowd funding: New port for small investors

The distribution of closed-end funds has long been regarded as an analog of business, not only because of the thick plant brochures. But the financial sales try

Crowd funding: New port for small investors

The distribution of closed-end funds has long been regarded as an analog of business, not only because of the thick plant brochures. But the financial sales try now new, digital ways. Previously, financial advisors, investors made the drawing of funds and ships, real estate, or Solar and wind power plants, in part, with aggressive methods in personal conversations, tasty, because the distribution of learning high commissions waved. However, the periods in which the investment was part of the only weakly regulated Gray market for capital are over. The capital investment act has tightened the rules since the year 2013.

Mark Fehr

editor in the economy.

F. A. Z.

Many of the Fund houses whose reputation has suffered under the plight of the ship Fund, have oriented new – also with a view to the distribution methods. So, the Dr. Peters Group in Dortmund is cooperating with the swarm of financing platform and interest rate module.

"Closed-end funds can be drawn on top of us now purely digital," says Volker Wohlfarth, managing Director of interest-rate block, the F. A. Z. the Corona has. crisis, the start of sales of the originally for the Premiere provided the Fund with three Hotels by crosses, but the Dr. Peters Group is not the only possible partners for cooperation Interest block, founded in 2016, is not actually a funds specialist, but one of only a few years ago resulting platforms for crowd-funding. In addition, so-called club deals for high net worth individuals are in the offer, which must invest at least 50,000 euros in a project.

participation even with small amounts possible

small investors on the other hand, on the interest component already with small amounts in real estate projects. The runs on subordinated loans, whose risk of loss is high. So far, the platform has attracted investments totalling more than EUR 75 million and about half of them paid back. Example: 419, investors have a total controls one Million euros for the renovation of a Lidl-market in Dannenberg in lower Saxony, which was paid in March 2020 to 15 months. The annual interest rate amounted to 5.25 per cent. In a subordinated bond flowed investors ' money was only a small part of the total financing of the project in the amount of 11.7 million euros. The majority came from a Bank loan of 9.5 million euros, 1.2 million euros were equity of the project company.

in the absence of interest on savings deposits, the money system appears in the swarm-funded projects many investors as a particularly rewarding. However, with the higher interest rate also at a higher risk of loss goes hand in hand, unlike in the case of interest-free, but by the protection of deposits protected Bank deposits. The investors become creditors subordinated part of the loan receivables or of the subordinated loan and will be liable in case of failure of the financed project, almost like equity investors. You get back only as much money as after the complete operation of the claims of all other creditors remains. The total loss of the invested money is possible.

"The decision whether and in which project financing, an investor invests, he has to make," said interest-rate block-managing Director, Wohlfarth. The platform provides no investment advice, either for closed-end funds for the swarm of projects. However, interest module analyzes the offered real estate projects, and provides a transparent representation and selection on its website. Investors do not pay any direct fees or issue premiums for the swarm of projects, because the interest component receives fees from the project developers. In view of the manageable investment amounts starting at 500 Euro, investors can participate in many different projects, instead of focusing everything on a single card. This protects against cluster risks. "Other platforms even allow you to significantly lower the minimum amounts, but from our point of view economically," says Wohlfarth.

Updated Date: 09 August 2020, 05:21

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