It does not have a formal definition, but, in practice, we use Resolution CMN 2686/2000

A backup servicer is a service provider that agrees to take up the servicing of an assets portfolio in the event of certain triggering events, particularly when there is failure or insolvency of the existing servicer.

VERT Gestora has an independent look and is able to do a detailed work of portfolio monitoring with customized and complex indicators. It brings governance to the structure and adds a lot in the post issuance with the interface involving the originator / assignor, the administrator and custodian of the fund and investors.

We set up securitization structures to finance the lending fintechs portfolios and manage the post-issuance, acquiring eligible credits and monitoring the performance of the portfolio. In most cases, via FIDC or financial debentures. We have done venture debt and CRI too.

Yes, some transactions are considered off-balance sheet for the originator company or assignor, and vary on a case-by-case basis according to the structure.

Yes, we work both on transactions that have these receivables as underlying assets, as well as on collateral for other loans.

We seek investors from our relationship network in a marketplace lending concept according to the risk profile versus the return of the operation (and the tranches, when it has different classes), the size of the transaction, term, and type of instrument.

Ideally, we mirror the modus operandi that already exists regardless of the securitization. We align an operational treadmill that is in line with legal document and enables a better experience for partners and customers.

Especially in cases of corporate debentures and venture debt operations secured by receivables. See more here.

Yes, both. Green bonds in agribusiness and social bonds with fintechs. See examples here.

There are numerous differences, but the main ones are that the CRA is directly linked to a relationship with farmers and is restricted to credit rights, whereas Fiagro is related to the agro-industrial chain as a whole and can also invest in land and equity. See this material for more information.

Because unlike the securitization company of real estate credits and agribusiness, the securitization company of financial credits does not have the alternative of having separate assets and fiduciary regime.

We set up the investment vehicle, structure the transaction and manage the portfolio management. We eventually take up the backup servicer role and assist with ESG’s second party opinion (if and when applicable).

The reports follow a pattern but they are customized according to the indicators, triggers and indices of each issuance.

The securitization company of financial credits is formally a corporation. In practice, it works as an SPV (Special Purpose Vehicle). It issues debentures to investors and with the funds raised acquires financial credits (CCBs in most cases). The flow of the CCBs is what pays for the debenture.

On the other hand, FIDC is an investment fund and it has its own regulations by the CVM. It does not have any kind of restriction regarding the nature of the credits (they can be financial, commercial and from any sector).

The carry cost and the operational structure of the securitization company allow smaller volume deals be viable and some cases with specific characteristics better fit into the securitization vehicle. But there is no right or wrong. Each case is different and we need to consider the pros and cons to see the best instrument for our partners.