An investment is always associated with risks, all or part of the investment can be lost.
Most investments presented on Fundmatcher’s platform are made through syndicated direct loans (“Loans”) / have one or more properties and a concrete project idea at the bottom, which forms the basic framework for the investment. The investments are often different types of top financing for companies or tenant-owner associations (“Project Owner" or “Company") with limited collateral.
The level of risk for this type of investment is typically considered to be high which, combined with no financial advisor or other operator directly or indirectly reviewing or recommending individual investments, makes this type of investment suitable for;
- Experienced real estate investors who understand the pronounced and unspoken risks of the investment
- Investors who have consulted an adviser or expert with insight into the stated and unspoken risks of the investment.
A Loan can be combined with collateral in the form of pledging of real estate or shares, guarantee commitments, corporate mortgages or other collateral. Note that the collateral in this type of investment may be subordinated and / or of limited economic value.
Deposit Guarantee & Investor Protection
The investments presented on Fundmatcher’s platform are not covered by the provisions of the Deposit Guarantee Act (1995: 1571) or the Investor Protection Act (1999: 158) (or other unspecified guarantee), which means that the investor cannot receive any compensation in accordance with these rules about the project owner and / or the company, should they go bankrupt or otherwise have payment difficulties.
In addition to the risks associated with the investment instruments themselves and the collateral, there are a number of risks associated with the Project Owner, its financial resources, the project, suppliers and contractors, financing alternatives, external factors and business cycles, government approvals etc. Below we describe common risk factors that can be assessed as types of investments that can be assessed investment.
The risks are not ranked among themselves and do not claim to be comprehensive. Additional risks and uncertainties may exist in relation to each individual investment.
It is important to try to locate and analyze potential risks in the current investment and to weigh these against the offered return and the terms and conditions in general. Only after having done this and considering your own financial situation should an investment decision be made.
Please note that all investors have the opportunity to ask questions, via a digital query function, directly to the Project Owner before making an investment. Don’t hesitate to use this feature in case you have any questions or concerns!
Repayment of Loan
The project owner’s ability to repay the loans is typically dependent on the underlying real estate project proceeding according to plan, so that the investment is completed and the return promised. The overall risks in this part can be, for example. be that the project owner lacks the financial conditions to handle major deviations, costly, delays etc. or that the market regarding the project, for some reason, is deteriorating. Any collateral issued is no guarantee that the investor will be refunded invested capital or return. The investor should be aware that the entire investment can be lost.