We want to share an important update regarding Hoovi, one of our loan originators. Hoovi has approached us with plans to buy back approximately €2 million worth of their loans currently listed on the Income marketplace, and these buybacks will be executed this week.
This move is part of a larger strategic initiative—Hoovi is in advanced discussions with a bank to secure debt funding. This deal will significantly reduce their total cost of capital, enhance their profitability and growth potential, and diversify their funding structure. As part of the agreement, the bank will become an investor in Hoovi’s loans, strengthening its financial foundation.
What does this mean for our investors?
- You will soon notice that some of Hoovi’s loans with ongoing terms in your portfolio may have been bought back ahead of schedule.
- A Vote of Confidence from Institutional Investors: As part of this deal, the bank will invest in Hoovi’s loans, reinforcing trust in their lending model and financial strength.
- The Income team has carefully reviewed the batch of loans selected for buybacks, ensuring it is well-diversified across different loan terms and interest rates.
- Hoovi remains committed to Income and will continue listing new loans, ensuring investment opportunities on the platform.
- A more diversified funding structure will support the long-term sustainability of their business, ultimately benefiting our investor community.
We believe this is a positive step toward ensuring a stable, well-funded ecosystem for our investors. If you have any questions, please feel free to reach out.
