What is a managed crowdfunding portfolio and why is it a revolution for small investors?

The world of investments has changed thanks to new platforms and business models that allow small investors to access opportunities previously reserved for large capital. Among them, crowdfunding has stood out as a key tool to democratize investment. However, it is essential to consider how these investments are managed and diversified to maximize their benefits.

In this context, Álvaro Ballesteros Ollero, Partner and Administrator of León de Lidia Capital, explains to us how managed crowdfunding portfolios work, a service they offer to their clients in collaboration with Inversa. Through his experience, we discover how professional management can increase profitability and security, providing greater accessibility and control to investors.

How does the portfolio management service work and which investor profile can benefit the most from it?

Firstly, this service is available for both our clients, to whom we incorporate Inversa into their portfolio, and for clients who register directly with Inversa, but instead of investing directly, want to speak with professionals.

We will first get to know the client well, what they are looking for, and what they expect to achieve.

If everything aligns, and understanding that there must be diversification in every investment portfolio, we proceed to explain how this type of alternative investment in Factoring works and the use of the platform, and adjust which types of invoices or promissory notes to invest in, what risk levels to assume, what return objectives to pursue, and the timeline of the emissions.

Any investor can request our advice, which although initially focused on investment in Inversa, due to our holistic philosophy, will cover, if desired, their entire investment portfolio.

How did León de Lidia Capital start and what is your mission as an independent financial advisor?

León de Lidia Capital emerged from a group of professionals from different connected fields who fundamentally shared knowledge. At the end of 2022, it was decided to channel all that knowledge through a company registered with the National Securities Market Commission, dedicated to financial advising.

We collaborate with many entities that bring added value in different areas: we are financial agents for Caser Valores e Inversiones, to work with investment fund portfolios and provide our clients with access to thousands of alternatives.

We work with most insurance companies in the country to offer guaranteed savings insurance options and a wide catalog of pension plans, as well as annuities.

We incorporate into our portfolios, with trusted partners, investments in precious metals like gold, or Private Equity.

And of course, collaborations with entities that bring us unique differentiation, such as Inversa Invoice Market.

What led you to collaborate with Inversa and what added value does this agreement offer to your clients?

One of our biggest concerns is to constantly scan the market, looking for the best investment opportunities. For this, we hold committees with partners and collaborators in which investment proposals are reviewed and, if they pass all the security filters and are suitable for our investors, we incorporate them into our portfolio. In this aspect, we are quite demanding and only establish collaborations with entities that offer differential value.

In the case of Inversa Invoice Market, it provides us, within the vast universe of crowdlending, the best alternative in terms of profitability, security, and liquidity. Add to that a very powerful and easy-to-use technology platform, and an exceptional human team with whom we maintain continuous conversations.

What services do your clients request most often and what sets you apart in the alternative investment sector?

We don't focus on a single type of investor. We have clients of all kinds:

• High-net-worth individuals and families, with a history of relationships with large commercial banks, who are disillusioned not only with the results but also with the service and attention they received.
• People with limited financial knowledge, who want to earn returns on their wealth and want to do so with professionals who explain everything transparently and offer them a wide range of options without having to go to 10 different entities.
• People of retirement age, who are looking for optimal tax planning and income generation.
• Companies, foundations, associations with treasury, or those who want to structure incentive plans and talent attraction and retention plans.
• Young people with saving capacity who want to start building long-term capital.

We don't have our own products, we are financial advisors who create custom solutions for each client, adjusting risk levels, return objectives, and investment timelines. Each client has their own diversified portfolio based on their needs.

What advice would you give to someone who wants to diversify their money but doesn’t know where to start?

First of all, if possible, do it with a regulated advisor or financial entity that generates trust.

In any case, make sure you have clear objectives, determine your investment period and potential liquidity needs.

It’s essential to always manage efficiently, by making part of your portfolio profitable in the short term for unforeseen expenses or to take advantage of good entry points for other investments, and on the other hand, have a diversified portfolio with a long-term horizon that brings profitability.

For the first case, there are very valid options in interest-bearing accounts, deposits, savings insurance, money market funds, or crowdlending, where the target would be, on average, 2.5 - 4% return with little or no risk.

For the second case, again crowdlending, more aggressive investment funds (equities, commodities, longer-duration fixed income, and currency risk, for example), or investing in gold, a classic safe-haven asset. With a diversified portfolio, we could achieve an average return of 8% per year, with lower volatility than if we bet everything on a single investment, due to the lack of correlation between the different assets.

A person who achieves an average return of 6% per year would double their wealth in 12 years, going from 50,000 to 100,000 euros, for example.

A person who, starting with 3,000 euros, contributes 200 euros each month and achieves an average annual return of 8%:

• In 10 years, they would have contributed 27,000 euros but accumulated over 41,000 euros.
• In 18 years, they would have contributed 46,200 euros but accumulated over 100,000 euros.
• In 25 years, they would have contributed 63,000 euros but accumulated over 195,000 euros.

In summary: contact an advisor, start as soon as possible, and be disciplined.