As I briefly mentioned in my last portfolio review there has been and still is quite some talk on the blogs and discussion boards about the new management of Envestio. Many feel that the new owner and COO of the platform are not trustworthy due to their past professional career. Also, some people seem to be afraid that Envestio is a scam and that their investments will not be paid back. This fear might have been triggered by what is going on at Kuetzal right now. The performance of Envestio speaks a different language, though. Let’s take a look at the current situation at Envestio.
Envestio was bought by German investor Arkadi Ganzin. He was apparently mostly involved in the banking sector and now runs his own oil trading business (Compañia Española De Hidrocarburos 2019 Sl). There’s not much more information to be found about him which I find neither good nor bad. He is a private person. Nonetheless, it would be nice if Envestio shared Mr Ganzin’s vision for Envestio’s future as a p2b investment platform.
Mr Eduard Ritsmann joined Envestio as the new Chief Operational Officer (COO). The former COO Mr Kukin will stay involved until at least the end of 2021. Based on what I read on the web, the main criticism of the change in Envestio’s management evolves around the person of Mr Ritsmann.
He worked in many different areas and at some point represented or promoted (officially or unoffically) a company named ROSCH Innovations. You can read Mr Ritsmann’s statement about this episode of his professional life here. Amongst other products, Rosch promotes a machine that essentially produces energy out of nothing, hence a perpetuum mobile. Anyone with a background in science will take one look at this concept and know that this is bogus.
Apparently, Mr Ritsmann did see things differently or does not have the proper background to judge such technologies. I do not know. In any case, he promoted this technology at least once at some sort of conference. There used to be a YouTube video of his presentation but it now seems to be offline.
As a person with a background in science (I hold a PhD in chemistry) I find it strange that Mr Ritsmann was not more critical about this “magic machine”. But then again, different people have a different take on technology. Also, I do not see how this relates to his function at Envestio which is a completely different business. In other words, I will judge him based on his performance as COO of Envestio. Judging by the professional career that he posts on Linkedin he has the experience for the position as COO.
The loan performance on Envestio
Another concern I read on some blogs and which I also received via email is that Envestio only deals with 14 individual borrowers which took multiple loans. This data comes from this source and was published back in May 2019. So, it is not up to date.
Today, the loan projcts at Envestio are spread amongst 23 indivudal borrowers. As there are multiple instalments for several of these loans, there are multiple loan projects for some of these borrowers. All in all, 44 active loan projects exist.
Another concern or claim is that the loans are not paid back in time. I do not know where this claim comes from. All of the projects I was invested in were paid back in full on time. Just yesterday, two projects were paid back and several others are due in the next 8 weeks (see graph below).
Since I started investing on Envestio, 15 loan projects have been paid back without any issues (see graph below; 17 loan repayments in total since I invested twice in two of the projects).
Also, I did withdraw funds from my Envestio account multiple times (last time just yesterday) and these transactions to my bank account were all booked within one working day.
Due to the decreasing trust in Envestio some investors are obviously withdrawing their investments by paying the 5% penalty for an early buyback. Many projects that have already been fully funded are now listed under the Active Investments tab. At the time of writing, about 109’000€ worth of loan shares from previously fully funded projects are open for investment.
Besides the trust issues of some investors this shows that Envestio is able to pay back the investors who want to exit their investments. The available loan shares are also bought up rather quickly again by other investors who now get the chance to invest into loans they had previously missed out on.
Conclusion: the current situation at Envestio
Everyone needs to form her or his own opinion about the new management of Envestio. Sure, they could show more transparency but on the other hand Mr Ritsmann is responding to emails and is active on YouTube. Investors are now very tense due to the Kuetzal drama I think.
I still hold considerable investments on Envestio and currently see no reason to change that or to mistrust Envestio as a p2b platform. Naturally, I will monitor the currrent situation at Envestio closely as I do with all p2p platforms that I use. If the situation changes so will my judgement.