Reinvest24 update – Fees, KIRSAN, Regulation

reinvest24 update - fees, kirsan, regulation

Hello all! Before the next P2P portfolio update will be published, here is another update for Reinvest24. There I have recently invested in projects again and again, even if a small fee was taken each time. But now there is a pleasant change! About this and also about the changes in the shareholder structure and the current state of regulatory efforts I want to write in this blogpost. Have fun reading!

New fee structure

One of the few minus points of Reinvest24 has always been the startup fee, which was collected directly when investing in a project. If you calculate the return using XIRR, as I do, this has an immediate (negative) impact on the performance.

Of course, other platforms also take fees. This is completely legitimate and especially for young companies a source of income that is reluctant to give up. From 2019 Reinvest24 was still steep 2% in startup fees due, but already last year investors could be happy about a reduction to 1%.

Because Reinvest24 is rapidly growing out of its infancy (in fact it's one of the fastest growing platforms in the industry), it can now also allow itself to implement another change. The start fee will be cancelled and a success fee will be introduced!

What does that mean exactly? So far 1% were due directly when investing. These are now only levied on the principal when the project has been successfully repaid. So in my eyes a fair compromise that applies directly to newly published projects!

There are also fee-related changes in the secondary market. Here, the success fee will apply to new projects in the future. For existing projects on the secondary market, the well-known 1% start fee will still apply. In addition, the sellers now bear the 1% secondary market fee, no longer the buyers as before.

KIRSAN – new partner

And there is also something to announce about the company itself. At the end of October, Kirsan Swiss GmbH was introduced in a blog post as a new shareholder with an 18% stake. Three projects have already been implemented with KIRSAN in Latvia and Moldova. From the strategic partnership one expects synergy effects (e.g. building cost optimization) and also a scaling of the platform Reinvest24 with medium-term projects from further countries. Of course, the company wants to keep its clean slate!

Current state in regulation process

Reinvest24 is also a platform that is actively seeking regulation. In Estonia, they are now in the final stages of obtaining a financial institution license.

The platform is also still being prepared for the EU Crowdfunding Regulation, which already came into force on November 10, 2021. Here, a transition period applies until November 10, 2022.

My opinion

As I mentioned at the beginning, I increased my investments in Reinvest24 over time. At the moment I'm invested in 13 different projects with a total amount of 1.587,90 EUR. And because I'm very happy with the development of the platform I plan to increase my investment even further as new projects pop up.

At the moment there are three new projects available on the primary market. So you might take a look and don't forget the bonus*!

Autumn bonus campaign

The current bonus campaign runs until 30.11.2021 with the following bonuses:

  • Investment from 500 to 1.999 EUR = 25 EUR bonus
  • Investment from 2.000 to 9.999 EUR = 50 EUR bonus
  • Investment of 10.000 EUR and more = 200 EUR bonus

If you register with my link on Reinvest24*, you will receive a 10 EUR bonus. I will receive 1% of the investment.

About new projects on Twitter, Instagram and Facebook

On my own behalf, I would like to mention that I also present new projects on Twitter (kaph1016) and Instagram (investdiversified) in which I invest myself. Also, on Facebook I have a page. There are also a few insights into how I invest in other areas. So just follow me :). *Some links in my posts are affiliate or referral links. That means I get a little bonus. For each of those who use these links, however, there are no costs or other disadvantages. On the contrary, there is usually a start bonus or cashback. So if you use these links, you support my blog and for that I say thank you in advance!

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