CAPTIQ places bond for 30 million euros

Frankfurt, January 11, 2021. Frankfurt-based FinTech CAPTIQ has successfully completed its first bond placement and received an investment commitment of €30 million from BayernInvest. INNOFINCENTA advised CAPTIQ on this transaction. The funds from this first bond will be used to refinance low-volume loans exclusively for regulated professionals and can be accessed via the platform according to loan demand.

CAPTIQ GmbH has successfully placed its first bond for the refinancing of loans issued to regulated professionals (pharmacists, architects, doctors, lawyers, auditors, etc.). The issue of the bearer bond for 30 million euros with a ten-year term was fully subscribed by BayernInvest. The bearer bond already received an investment grade rating (BBB- restricted) via the Creditreform platform prior to the commencement of lending. With this risk rating and a targeted yield of around 2.60 percent p.a., the CAPTIQ bond meets the requirements of risk-averse and long-term investors such as custodian A-managers, insurance companies or pension funds. Furthermore, the bearer bond comes with a 10 percent default guarantee, a portion of which is contributed by CAPTIQ itself. This bond is the first of a German alternative financing platform to have an investment grade rating and to have secured refinancing from institutional investors prior to the market launch of the credit offering. This sets CAPTIQ apart from P2P business models, in which many small amounts are collected from private investors ('crowd') and passed on as personal or corporate loans.

'After well-known investors from the German and international financial scene have invested in CAPTIQ, the successful bond placement is further proof of the attractiveness of our business model and the targeted loan portfolio', commented CEO and founder Soraya Braun on this important milestone. 'We are very pleased with this additional confirmation for our approach, which offers risk-averse and long-term oriented capital managers access to a new asset class with an attractive risk-return profile,' added Co-Managing Director and co-founder Lorenz Beimler.

CAPTIQ has developed the first alternative online financing solution tailored to the needs of regulated professions, the majority of which are freelancers. The loans brokered via the CAPTIQ platform address financing requests of less than 250,000 euros in particular, which are hardly economically viable for commercial banks at current market conditions, are hardly reached by development banks and thus remain underserved. The annual demand for financing in this segment in Germany amounts to around EUR 8 billion.

Key to the business model are an automated credit rating model and a B2B platform that simplifies loan origination while integrating financial advisors and banks into the distribution model.

'With its concept, CAPTIQ addresses two underserved markets, brings them together through innovative use of digitalized processes and with the involvement of established market participants,' said Alexander Banik, Head of Portfolio Management Key Accounts & Execution at BayernInvest. 'The risk structure of the potential loan portfolio matches our requirements very well. We have not been able to invest in this asset class so far due to a lack of supply.'

CAPTIQ expects to launch the lending platform in the first quarter of 2021 and plans to issue additional bonds and place them with institutional investors if there is sufficient demand from borrowers.

CAPTIQ is a credit platform for regulated professionals, e.g. for setting up a medical practice or a law firm. The company offers financing at market conditions up to 250,000 euros. In addition to legal forms with a balance sheet (e.g. limited liability companies), the company also caters to the needs of non-accounting legal forms typical of regulated professions (e.g. freelancers). The loans are refinanced in securitized form via institutional investors such as Depot A managers, loan funds, pension funds, insurance companies or pension funds. The CAPTIQ business model is based on a B2B approach that involves financial advisors and banks in sales and lending.