SmartLenders, an asset manager in the marketplace lending sector, has distributed an end-of-the-year missive with an optimistic note predicting better times ahead. SmartLenders states:
“It cannot be ruled out that in 2023, a massive reduction in inflation, a solution to the Ukrainian conflict and a revival of the Chinese economy will bring a breath of fresh air to global growth.”
Yes, giga-high inflation and rapidly rising interest rates combined with global strife like the war in Ukraine and Chinese chest-pounding (not to mention COVID) have turned 2022 into a really tough year. SmartLenders states that marketplace loans have not been immune to the challenging environment but in spite of the difficulties, the company has delivered a positive performance for the year.
“We have stayed the course in this “perfect storm” by maintaining our fundamental principles of rigour, technological contribution, and product innovation. The events of 2022 have validated our approach, which combines capital protection with measured risk-taking, long-term partnerships and opportunism. Paradoxically, the end of “easy” money and the disappearance of “tourist” investors offer many opportunities given our knowledge of the fintech ecosystem and the scarcity of funding. As such, there is probably no better time to deploy our The Lending Smart Fund in excellent conditions. Innovative Fintechs are numerous, and we see, especially in Europe, multiple companies with innovative business models and successful management.”
Paris-based SmartLenders targets the prime segment of the credit curve in both the US and Europe. While not reporting average returns for the year, SmartLenders anticipates that future returns will deliver high rates and more restrictive lending or “excellent returns.”