Automation Finance (AF), a distressed debt platform in the real estate sector, is seeking $50 million in a Reg A+ offering.
Founded in 2015, AF claims that it has returned a weighted average of 21.5% to investors in its 3 earlier funds. This newest offering is targeting a return of 8%. Since launching Automation Finance in 2015, the company and its affiliates have purchased and liquidated approximately 1500 mortgages with a par value of approximately $100 million, according to the offering circular.
Automation Finance strategy is to purchase distressed debt at a discount and and then work with the borrower to agree to a settlement or payment plan. Once a non-performing loan becomes re-performing, it can be held as an income-producing asset or re-sold at a profit.
Paul Birkett, CEO of Automation Finance touts the performance of the offering:
“The key to great returns is speed and ease. By minimizing delays, eliminating fees and avoiding costly foreclosure costs if possible, we can pay our investors up to 10 times what they would earn in a typical savings account. It’s rare to find an investment with impressive target returns that creates so much social good. Since 2015 we have helped thousands of people avoid foreclosure and the loss of their home.”
AF says its prior offerings have not missed a scheduled distribution but returns are not guaranteed and past history may not be indicative of future returns.
As a Reg A+ offering, it is available to all investors. The offering circular is available here.
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