1741 fund management and the global SME marketplace lender bit bond have today the introduction of a new alternative Investment Fund (AIF) announced. The Fund provides professional investors access to a diversified portfolio of small credit operations, which will be awarded through the SME credit platform bit bond.
Direct investment in SME and other forms of B2B debt financing are becoming more popular. Because these assets have usually amounts in the range of 1,000 to 200,000 euros, institutional investors must create structures that make bringing these assets for them.
1741 fund management has in Liechtenstein a mutual fund as a SICAV (Société d’ Investissement à capital variable) established to allow institutional investors of any kind about bit bond to invest in SME lending. The product is an alternative investment Fund (AIF) in accordance with the alternative investment fund manager directive (AIFMD) of the European Union, the highest degree of regulation for alternative investments in the EU.
More than 2,300 loans worth EUR 6 million have been awarded since the launch of bit bond in the year 2013. So far registered 130,000 users from 120 countries. Most loans are used for short-term funding for resources from online retailers to engage in the transactions on E-commerce marketplaces such as eBay, Amazon or Etsy.
In October 2016 bit bond received by BaFin, the German financial supervisory authority, its own regulatory approval. Bit bond uses the Blockchain technology for payment processing and is one of the few fully regulated and licensed providers of financial services on a Blockchain basis.