Kilde - Who are we and why we started the investment platform for private debt in Singapore
by Radek Jezbera
KILDE is an investment platform for private debt. We raise money for digital lending firms. There are 1.7 bn consumers and practically all the SMEs that are not eligible for a loan from a bank. Fortunately, digital lenders can serve these customers at profit. However, here comes the problem. Digital lenders need to borrow money as well. They do so from the investors. Investors are looking for yield but most lack the access and expertise in this asset class.
Hence, we help investors to get access to this profitable and low-risk asset class and also digital lenders to raise funds for their loans. We do it by operating a two-sided investment platform. On the one side, digital lenders issue private bonds. On the other side, the investors buy these bonds and receive regular returns.
What happens behind the scenes? We conduct a thorough credit risk assessment of the digital lender before they can issue any bonds. Then, we arrange the bond issuance and let investors subscribe the bonds. Those two are regulated activities and we have a license from the regulator in Singapore to do them. Unlike most of our competitors, we monitor the performance and covenants of the bond until it is repaid.
Why do investors want to invest with us? Even, individual investors get access to this asset class with high returns and peace of mind. The digital lenders get the funding they need for a competitive price. Our business model is simple. We charge the investors 1% and digital lenders 2% of deployed capital.
Although, we have competition. We are the only investment platform for private debt with due diligence and disclosure comparable to the investment banks. This year digital lenders will issue $400B of loans. They will pay $2.6B in commissions for the funding.
We have great traction. 90 investors in the pipeline and $4m of funded deals. 9 digital lenders onboarded with $30m more deals coming up.