European trade receivables, institutionally structured.
A Luxembourg-domiciled credit fund investing in short-duration receivables from vetted European originators. Phase 1 is a conventional SPV building an audited track record. Phase 2 adds on-chain distribution from 2027.
The best-performing asset class in credit, mispriced by history.
Short-duration trade receivables have delivered the lowest annualised loss rates in structured credit across every cycle since 2008. Lower than investment grade corporates. Lower than direct lending. An order of magnitude lower than high yield.
And yet senior tranches still pay 6 to 8% net, because European banks have retreated from factoring under Basel IV and the institutional market has not yet closed the gap. The yield is a liquidity premium, not a credit premium.
The European SME working capital gap, widening as bank warehouse lines shrink and independent factoring companies hit capacity ceilings. Private credit has flooded into direct lending; short-duration receivables remain underserved because they require operational expertise generalist funds do not have.
Candour Finance buys these receivables (30 to 90 day WAL) from vetted originators into a Luxembourg bankruptcy-remote SPV, tranches the pool, and pays senior investors a stable coupon while equity captures the residual.
Track record first. Tokenisation second.
Every failed private credit vehicle of the last decade (Greensill, Neumann's new ventures, the 2023 DeFi credit casualties) shared the same sin: promising distribution before proving underwriting. Candour Finance reverses the sequence.
Phase 1 operates as a conventional private credit fund for twelve months: Luxembourg SPV, Big-4 audit, monthly independent NAV, institutional LPs. Only once the book has demonstrated performance against its thesis does Phase 2 add on-chain distribution through an ERC-4626 NAV-accruing vault.
Launch token. Raise capital. Source assets. Hope it works.
Source assets. Prove the book. Audit. Then tokenise distribution.
Institutional plumbing, on purpose.
UK, NL, DE, FR. Originate receivables, sell to the SPV at discount, collect on maturity.
2004 Securitisation Law. Bankruptcy-remote. Compartmentalised. True sale.
Phase 1: conventional LP subscriptions. Phase 2: ERC-4626 vault distribution from 2027.
Designed around every lesson Greensill ignored.
Greensill's collapse was not an asset class failure. It was a governance failure. The safeguards that were missing are hardcoded into our structure.
| Asset validity | True sale only. Invoices verified against signed purchase order and delivery confirmation. |
| Concentration | 5% single-obligor cap. 15% single-originator cap. 20% single-sector cap. |
| Insurance | Multi-insurer panel; A-rated minimum; staggered renewal to avoid cliff exposure. |
| Liquidity | 20% first-loss equity buffer. 30-day cash reserve. Quarterly LP redemption with 60-day notice and gates. |
| Governance | Independent directors on the SPV board. Monthly NAV by Big-4 administrator. Annual Big-4 audit. |
| Key-person risk | Investment decisions ratified by a credit committee, not the founder alone. |
On-chain distribution, same underwriting.
Once twelve or more months of audited performance exist, the same underlying strategy is wrapped in an ERC-4626 NAV-accruing vault. No change to the assets. No change to the underwriting. A new distribution rail for stablecoin-native institutional capital.
ERC-4626 vault
NAV-accruing share token. Standard Ethereum vault interface supported by institutional DeFi infrastructure.
Whitelisted access
KYC and AML gated at the smart contract level. Transfers restricted to verified institutional addresses.
MiCA-compliant
Issued under the Luxembourg securitisation regime. Distributed under MiCA to EEA investors.
DeFi distribution
Listed on curated Morpho vaults and Aave Horizon. Institutional stablecoin treasuries as anchor depositors.
Be first in line when Phase 2 launches.
Built by people who have done this before.
Investment banking and structured finance background. Former fintech CFO and treasury lead. Principal investor in Phase 1 alongside LPs: founder capital sits in the first-loss equity tranche.
Let's talk.
Candour Finance is raising €5 to 15M for its first close, targeted Q2/Q3 2026. Founder co-invest in first-loss equity alongside LPs.