Investment
At PlusPlus Capital, we help our clients find sustainable tailor-made solutions to their temporary financial problems.
Business model
PlusPlus Capital has hitherto been solely focusing on claims against private persons. As clients are generally unable to fully repay the debt in one payment, the client can compose a payment schedule that suits their circumstances.
People with payment difficulties are socially disparaged and largely hindered from active participation in the economy. By offering tailor-made solutions to our clients, we help them achieve creditworthiness in a discreet, simple, and effective way.
PlusPlus Capital purchases and handles non-performing debt portfolios while helping people with payment difficulties restore their solvency. This goal is accomplished via redesigning the loan terms as well as maintaining a flexible payment schedule.
If the client has obligations to several loan givers, the debts can be reorganised into one loan with one monthly payment. Collection through a litigation process is a rare exception applied only when debtors fully ignore their obligations.
Reports
Debt Purchase
We are prepared for both one-off transactions and longer-term (up to 3 years) contracts to purchase portfolios on a regular basis.
We purchase overdue loans and other non-performing exposures from financial institutions and non-financial sector merchants.
Our core competence is handling exposures against private individuals. Claims against legal entities can be reviewed case-by-case.
We pay fair market price and, as a rule, ensure settlement upon transfer of ownership.
We prefer diversified portfolios containing a reasonable number, preferably at least 100 individual claims.
We seek win-win solutions to let sellers focus on their core business, offer affordable solutions for debtors and ensure reasonable returns to PlusPlus’ investors.
Market
Receivables management is a large-scale industry that is growing on a domestic, regional, and global level. Non-performing exposures make up approximately 4% of the aggregate loan portfolio in Europe.
Based on ECB data, the total volume of NPLs across Europe has been between €600 billion and €1,100 billion over the last years.
The growth in the NPL market is triggered by several factors. These include the shift in corporations’ policy to outsource non-core activities, the tightening financial sector regulations, investors’ appetite for returns that the industry offers, developments in the financial services industry, and overall macroeconomic trends.
PlusPlus Capital considers Estonia, Latvia, Lithuania and since 2019 also Finland, as its home market. Each of these states is equally important for the company.
The Baltic market is characterized by a healthy competition between a number of players regularly invited to bid for non-performing debt portfolios.
Individual exposures are typically sold as portfolios worth tens of thousands to several million euros. The most important suppliers of portfolios to the market are financial institutions, followed by telecoms and other types of sellers.
162 M€
Debts to collect
165
Debt portfolios purchased
Claims bought
Years of experience
Timeline
1. Forward-flow agreement: an agreement to transact a fixed amount of debt over a fixed period of time in future for a predetermined price (discount). The actual claims do not exist or are not yet overdue at the moment of the agreement.
All the main business lines and markets were in place starting from Q1 2020.
Key financials
Total assets grew in 2021 to
€113+ million
yearly increase 15.3% compared to 2020
porftolios in 2021 amounted to
yearly increase 15.3% compared to 2020
yearly increase 15.3% compared to 2020
| € | 2017 | 2018 | 2019 | 2020 | 2021 |
|---|---|---|---|---|---|
| Total portfolios | 22,382 | 42,178 | 74,033 | 90,765 | 106,283 |
| Total assets | 26,371 | 52,286 | 82,233 | 98,398 | 113,427 |
| Owners equity | 9,759 | 15,737 | 25,459 | 30,408 | 43,312 |
| Operating revenue | 6,783 | 12,751 | 24,195 | 22,034 | 26,553 |
| EBITDA | 3,677 | 8,148 | 16,633 | 14,535 | 17,127 |
| EBIT | 3,493 | 7,910 | 16,225 | 14,056 | 16,554 |
| Net profit | 911 | 3,845 | 9,236 | 6,031 | 5,274 |