Investor Andris Earns 10% Per Year Lending to Baltic Companies Through Capitalia

Stable profit rate

Since July 2024, investor Andris has made 27 investments in companies of various industries. Of these, 13 loans have already been fully repaid. The total return of the investor’s portfolio reaches 10.4% per year. Even taking into account provisions for potentially doubtful loans, the net return remains at a high level – 9.71%.

This indicator is comparable to the historical average return of investors on the Capitalia platform (10.81% per year) and is, on average, 2-3% higher than the yield that an investor could currently get with a diversified portfolio of corporate bonds of the Baltic countries.

• The construction company MGD Būve financed by the investor Andras.
• Photo: Billy Lotz

The importance of diversification

The portfolio of investor Andras is well diversified between various sectors – funds are invested in companies in the agricultural, manufacturing, financial, real estate and service sectors. However, in general, Capitalia advises investors to aim for a portfolio with more than 25 active investments. Wider diversification reduces the impact of individual loans on the overall portfolio yield, ensuring more stable long-term capital growth.

• Wood industry company Softwood financed by investor Andras.

Operating principles of the platform

An important safety factor is Skin in the game principle – Capitalia co-finances each project, investing its funds together with investors. This guarantees that the interests of the platform and investors are united, focusing on the successful repayment of the loan.

New opportunities and future plans

To help investors quickly build a diversified portfolio, Capitalia offers an average of one new loan opportunity every day. The minimum investment threshold in each project is 200 EUR. In the near future, Capitalia plans to introduce a unique innovation at the European level – loans whose repayment will be almost fully guaranteed by the European Investment Fund (EIF), thus offering investors an unprecedented level of investment security.

About Capitalia

Capitalia is a leading provider of alternative financing for small and medium-sized companies in the Baltic States and Finland. The company has financed more than 5,000 companies, investing more than 100 million euros in their development.