In September, the APS Financial Group opened a second option for investors to evaluate free funds through their successful APS Credit Fund Sicav. Last year, it collected almost CZK 800 million in the first sub-fund of RHAPSODY. The currently opened RHAPSODY II sub-fund follows the strategy of the first sub-fund and offers investors from the Czech Republic and Slovakia an expected appreciation 12 percent. Funds can be deposited into the sub-fund until December 21 of this year.
The RHAPSODY II sub-fund represents an interesting investment opportunity on the one hand, and investments in receivables on the other hand represent an interesting and lucrative alternative to traditional investments, especially in terms of the profit metric for the amount of risk undertaken. “The main advantages of investing in the RHAPSODY II sub-fund are higher returns than those normally provided by real estate or some private equity investments. It is also not necessary to wait ten or more years for the return of the principal. Considering that we operate throughout Central and South-Eastern Europe, we are not dependent only on claims from Czech banks, which allows us to create a relatively diversified portfolio of claims, which reduces our risk of potential losses,” emphasizes Martin Machoň, CEO of APS.
In addition, more and more interesting portfolios and receivables are appearing on the European market, which are potentially interesting for the fund. Soaring energy prices and the current inflation only exacerbated the problems from the pandemic. It can be assumed that the proportion of those who will not be able to repay their obligations will increase. This will inevitably set off a chain reaction for the banks. Fearing a crisis, they start to get rid of these receivables, which is an investment opportunity for companies specializing in receivables investments.
“Our first sub-fund focused mainly on large corporate receivables that are secured by real estate, and we want to choose a similar strategy for the second sub-fund,” explains Martin Machoň, adding, “Our main business partners are in the vast majority of banks.”
The expected return on investment of the RHAPSODY II sub-fund is at least 12 percent per year after taking into account all costs. “We are conservative with the valuation, but our first sub-fund RHAPSODY is doing well and is at 105% of the planned net cash flow for the first half of 2022,” says Martin Machoň. The sub-fund has an investment horizon set at 4 years from entry plus 12 months for settlement. Only a qualified investor can invest in the RHAPSODY II sub-fund. The minimum investment amount is 1 million crowns.
APS cooperates with the QI investment company, which is part of the Conseq group, to establish a sub-fund. She is also the administrator of the fund.
Please note that the investment outputs of the sub-fund may change during the investment period, so the value of the investment may fall as well as rise during its duration. In this context, we emphasize that the sub-fund’s investment objectives cannot be guaranteed, and historical results are not indicative of future results. None of the given information can be interpreted as a recommendation to invest in investment instruments or as investment advice.
Source: APS and CTK
