Debitos has tapped into a lucrative market: the Frankfurt-based FinTech company is opening its successful secondary debt market platform to third parties.
Transaction advisors and investment banks from all over Europe can now benefit from the digital marketplace and sell their customers’ credit portfolios independently. Debitos guarantees the reliability of the execution platform, while the advisor focuses on the data preparation and the moderation of the sales process. The advisor also acts as the sole contact point for seller and investors during the sale process. “We are opening our infrastructure to give advisors direct access to our platform with full control over the entire auction process. This is in response to the demand from the market”, says Debitos Managing Director Timur Peters.
Debitos has offered quick and easy sales of NPLs (non-performing loans), claims and receivables through the online marketplace it has developed in 2013. Credit exposures with gross value of more than 1.6 billion euros have been successfully transacted using the auction-based digital exchange platform. More than 470 international investors are now registered with Debitos and can bid on the debt instruments listed for sale. Customers of the Frankfurt-based FinTech include stock-listed companies, regional state banks and private banks as well as small- and medium-sized enterprises and investment funds. Transaction advisors and investment banks can now be added to this.
Opening the debt market to third parties offers many advantages for both sides, according to Timur Peters: “Debitos has established itself in the past years as a platform for selling various types of debt. It features a comprehensive database of market prices and investor preferences. Advisors can now benefit from this. In addition, the infrastructure offers a data room and Q&A tool, standardized data templates and contracts as well as established sales processes and rules. Transaction advisors and investment banks generally have a large number of customer contacts with a pressing need to sell their loans and claims quickly and easily on the secondary market. In the past, they generally focused on higher-volume transactions,” says the Debitos founder. Using the Debitos platform, the transaction advisors can manage their divestment mandates more effectively and expand their own service to the large number of lower-volume transactions.