Spanda Capital CEO Matīss Krištobans recently addressed investor questions. He focused on current market conditions, Spanda’s strategy, and the measures taken to ensure transparency, risk management, and compliance. This Q&A comes at a time when investors are seeking clarity, and it provides insight into how the company operates and adapts.

He focused on the most important questions:

  • How does Spanda Capital differentiate itself from other NPL investors such as Hoist Finance or Interim?
  • For how long does the company work on a portfolio?
  • Is there a market to resell uncovered amounts?
  • What early warning indicators are used to proactively manage portfolio risks?
  • Will quarterly reports be published in the future?
  • Will there be audited annual reports?
  • What role does Spain play in Spanda’s expansion strategy compared to other European markets?
  • How do rising interest rates and a possible economic slowdown affect purchase prices and recovery rates?
  • How does Spanda handle regulatory changes, such as stricter consumer protection laws in credit recovery?

Differentiation in the NPL market

Spanda Capital focuses on small to medium-sized NPL portfolios, which are often overlooked by larger players. This creates opportunities to acquire assets with less competition while applying an active management approach to maximize recoveries.

Portfolio time horizon

On average, recoveries are forecasted over a 10-year period. Timelines can vary depending on the characteristics of each portfolio, but the strategy emphasizes long-term value creation rather than short-term exits.

Secondary market opportunities

There is a growing market for reselling uncovered NPL portfolios, often called the secondary NPL market. While Spanda monitors this development, the company’s primary focus remains on optimizing recoveries through direct management. Strategic disposals may be considered in the future.

Risk management practices

Spanda applies a set of early warning indicators tailored to each portfolio. These include late or missed payments, broken promise-to-pay ratios, and other behavioral and financial signals. By monitoring these factors, the company can proactively adjust strategies and minimize portfolio risks.

Reporting and transparency

To ensure ongoing investor confidence, Spanda Capital will be publishing quarterly reports on performance and progress. In addition, audited annual financial reports have been published and will continue to be made available.

Expansion strategy in Europe

Spain is the company’s first entry point into the European market. The local team plays a strategic role in supporting further regional expansion as Spanda strengthens its footprint across Europe.

Market conditions and opportunities

Rising interest rates typically reduce the present value of NPL cash flows, leading to lower purchase prices. An economic slowdown can increase discounts offered by sellers, while also pressuring debtor repayment capacity. 

Spanda views these conditions as an opportunity to acquire portfolios at more favorable prices, positioning for stronger long-term returns as economies recover.

Regulatory compliance

Strict compliance with consumer protection laws is central to Spanda’s operations. The company and its partners in Spain, including debt collection agencies and law firms, operate fully within regulatory frameworks. This ensures both legal integrity and sustainable investor confidence.