Fund Strategy

Credbull's introduction of a licensed on-chain private credit fund represents a significant advancement in the realm of Decentralized Finance (DeFi) Real World Assets (RWA). This pioneering venture positions Credbull as a trailblazer, particularly with its focus on providing structured high fixed yield products backed by returns from the best-performing asset class today: private credit.

Private credit lending has proven to be a top-performing asset class over the past two decades, delivering impressive returns while managing risks effectively. Traditionally, these opportunities have been accessible only to institutional and High Net Worth (HNW) investors. Credbull's platform aims to democratize access to these lucrative investment avenues, making them available to a broader range of investors.

The fund offers a passive 10% fixed yield and the potential for up to 30% upside in the Fund’s performance during phase 2. This structure provides investors with an attractive fixed return while also opening up the possibility of additional gains based on the Fund's performance, offering a balanced mix of stability and potential for growth.

By leveraging blockchain technology and embracing the principles of DeFi, Credbull is not only revolutionizing private credit lending but also fostering greater inclusivity in the financial landscape. This initiative has the potential to empower a broader range of investors, enabling participation in previously exclusive markets and facilitating more effective portfolio diversification.

Thesis

Fund macro strategy: capital preservation, transparency in private credit lending
Objective: Support SMEs across the GCC and APAC with short-term, high-interest loans
Diversification: High diversification of capital across multiple SME Originators, Products and SMEs

Strategy

Geographic focus: GCC and APAC
Target: High-growth SME lending sector.
SMEs willing to pay high APRs (18-25%) due to limited banking products.
Strategy: Support high-yield, short-tenor debt products distributed by SME Originators, designated as Nonbank Financial Institutions (NBFIs)
Multi-originator asset allocation strategy across audited and established Asset Originators.
Originators go through rigorous risk assessment.

Allocation & Diversification Strategy

Geographies: GCC and APAC
Sectors: Servicing, Manufacturing, Trading, among others.
Originators: Established SME Originators with audited track record of performance
Products: Term Loans, Invoice Financing, Point of Sale Loans, etc.
SMEs: Revenue >$500,000/annum, ~24 months of trading history.
Transactions: US $50,000 to $150,000 range, with concentration risk managed within policy