Estonian property p2p lending marketplace Estateguru announced that it has secured its first institutional investor.
In March 2018, Estateguru signed the firmâ€™s first institutional credit line to be invested in loans originated in the Baltic market with Germany based Varengold Bank AG.
Varengold Bank AG is a German private bank, headquartered in Hamburg. Founded in 1995 as an asset management boutique seeking to offer individual and high-performing financial products for private and institutional clients. In 2013, Varengold was granted a commercial banking license when it transformed into to fully fledged commercial bank.
Estateguru CEO and co-founder Marek PÃ¤rtel comments: “Establishing the EstateGuru – Varengold cooperation is a proof of having found a mutually beneficial cooperation model between a traditional financial institution and a fintech company. This is a clear sign that building a diversified portfolio of property backed loans is a very appealing instrument for institutional investors. Our Pan-European retail investor base is still the main source of capital. …”
Estateguru COO Mihkel Stamm adds: “Establishing a cooperation with Varengold Bank is an unprecedented assurance of the quality of EstateGuruâ€™s business processes. The due diligence process was thorough and lengthy, during which Varengoldâ€™s representatives were convinced of EstateGuruâ€™s product, procedures and the people behind the business.â€œ
Since the establishment in 2014 Estateguru’s investor base of over 11 000 investors have funded in excess of 50 million EUR of secured property loans in Estonia, Latvia, Lithuania, Finland and Spain. With the recent developments, including entering 2 new markets in 2018 Q1, establishing an institutional credit line and an ongoing equity round, the firm is setting goals for the next European markets, to establish its Pan-European reach in coming years.