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P2P Credit Portfolio

  • What is P2P lending?

    P2P lending (person-to-person lending) is the direct issuance of loans from a creditor to a borrower without the participation of traditional financial institutions. This service is provided by specialized platforms where the user can act both as a lender and as a borrower. Borrowers get cheaper loans (the cost of lending platforms is lower than that of banks), and investors get access to direct investment in loan portfolios at more risk-friendly rates than bank deposits / bonds.

  • What are the platforms and types of P2P loans?

    The first P2P lending platforms (Prosper, Lending Club) appeared in 2006 in the USA. The volume of loans issued through the Lending Club by 2018 amounted to more than $41 billion. The P2P lending market is among the most growing financial sectors (50% annual growth in the last 10 years). At the moment there are many platforms in the USA, Europe and Asia with track record accumulated over several years (Lending Club, Funding Circle, Prosper, Daric, Social Finance, Zopa, Avant, onDeck Capital, RateSetter, Kabbage, Mintos, etc.)

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    Leaders of the P2P market offer a wide range of types and terms of loans and, accordingly, investments in these loans.

    They may be classified as the following:

    • Unsecured consumer loans
    • Small business Loans
    • Car loans
    • Bridge real estate loans
    • Term: 1-36 months
    • Debt amortization: 1) payment of the body of debt as at the end of the term, 2) payment in parts
    • Interest rate: 5% -25% in USD / Euro
    • Default level: 2% -30% depending on the level of credit risk
    • Collateral: secured and unsecured loans
    • Loan guarantees: with guarantees of third parties (including guarantees of the platform or providers of debt) and without
    • Liquidity: with the presence of the secondary market and the possibility of early exit from the asset and without

  • What are the problems of P2P investors and what solution is proposed?

    The main problems of P2P investors are as follows:

    • The choice of P2P platform (variety of platforms, legal issues, etc.)
    • Proper assessment of individual loans credit risk (the need to correctly estimate the level of defaults)
    • Creating a diversified portfolio (allocation of portfolio for individual loans)
    • Timely rebalancing of the portfolio (time-consuming process)
    • Low liquidity of many platforms and loans (the need to wait for the end of the loan term)

    Alphatek offers its services in solving these problems in order to achieve an optimal risk / return ratio of the loan portfolio without the need of active participation of an investor.

  • What is offered to investors?

    Investors are offered with:

    1. Standardized P2P portfolios.

    2. A portfolio created for an individual client profile. In this case, the parameters of the portfolio and conditions are negotiated individually.

Standard P2P portfolio
  • P2P loan portfolio diversified by type of loan, geography, risk level, currency, terms and profitability
  • USD, Euro, Rub
Exposure to risk factors:
  • Credit risk, counterparty risk (platform), interest rate risk
Target yield:
  • 7-12% in USD/Euro and 15-20% in Rub (excluding asset management fees)
Target risk:
  • Maximum level of defaults below expected return
  • Up to 2x in some platforms
Minimum amount of investor capital:
  • From $250k
  • With the presence of a secondary market and the ability to exit the asset within a month
Alphatek commission:
  • Management fee 1.5% p.a.
  • Success fee: 25% of profit above 5% p.a. of the investor
    Investment term:
    • From 1 year (Early complete liquidation of all positions within a few days and withdrawal of funds from the account is possible. The remainder of the annual commission will be withheld in this case).
    Strategy benefits: 
    • High yield of 7-12% in USD/Euro at an investment risk level (similar to the ratings of credit agencies BB + or higher)
    • Low correlation to major stock indices
    • This strategy is not offered for retail investors in Russian market.

    Alphatek Advisors is an alternative investment platform

    The proposed investment strategies, such as Smart Beta, Pure Alpha, P2P loan portfolio are based on years of research and development of our team, have a long track record and outstanding risk-return characteristics, and presented for the first time in the Russian market for retail clients. Our priority is to find and select the most promising and profitable strategies for creating an investment portfolio.