This article contains a video recorded during the Step Anywhere Conference 2021. Where KILDE's CEO, Radek Jezbera, presents and explains how KILDE works and what does KILDE do to tackle modern situation. KILDE is focusing on a specific asset class within private debt - consumer lending assets We have analysed more than 30 consumer finance lending firms in the past 6 months in Europe, Central Asia, and South-East Asia. We have seen the impact of the COVID crisis on their loan books and we have also seen that the consumer lending assets have shown much more resilience than we expected.
The situation on various geographical markets diverged strongly given government response to the pandemic, wage subsidies, and declarations of moratoriums on debt repayments. Generally, we have seen a 20 to 30% drop in cash flows from the existing consumer loan books starting from April 2020. Several lenders retreated from the market but their market share was quickly taken by capitally stronger lenders. Towards the end of 2020, the lenders started expanding their loan books again. At the same time, the cost of raising capital has decreased as well creating favourable conditions for extensive market expansion.