[Issuer] Fortunafi - May 2022 Update & Updated Executive Summary

Real World Assets Pools
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Pool Value: 5.8 million DAI

# of Assets: 10

Pool Updates

As of May 31, 2022, the Pool held ten (10) loans with a total value of approximately $5.8 million. An additional loan was made to an existing borrower during May, in the amount of $50,000. The borrower is a small yet profitable SaaS business that has more than doubled its revenues in the past year. This brings the total number of assets added to the Pool during 2022 to four (4) new loans, for a total invested amount of $2.7 million.

During March, the Pool had its first loan paydown, in the amount of $500,000. The borrower paid full principal and accrued interest, resulting in the payoff of its two (2) related asset NFTs. Despite good performance from the borrower, due to the variable nature of revenue-based loans, the overall IRR on the loan of approximately 11.5% was slightly below the Pool’s target of 15%. As a result, a small amount of accrued interest to the asset NFTs is being written off. This small impact is comfortably absorbed by the junior (TIN) tranche, while the loan’s return more than covered the required return on the senior (DROP) tranche.

New Asset Originator & Updated Executive Summary

In our continued efforts to add high-quality assets to the Pool, while improving diversification, we are onboarding a new Asset Originator (“AO”). As a part of this process, we have updated the Pool’s Executive Summary (“ES”) and have notified all Pool investors and the Maker community. Follow this link to view the updated ES and subscription document. Please note that due to a confidentiality agreement we are currently not allowed to publicly announce the name of the new AO. For this reason, the linked ES is partially redacted. Existing investors in the Pool have received a non-redacted version.

The onboarding process and the changes to the ES will take effect twenty-eight (28) days after this posting. The Pool will benefit from a new source of assets and an increased ability to source from a larger variety of underlying borrowers. The new AO currently has monthly originations running at $40-60 million, creating plenty of investable capacity for the Pool.

To provide an opportunity for questions we are having an AMA on Tuesday, June 21st at 1pm Eastern Time (click to join).

Fortunafi Team

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Thanks to all that joined us for the AMA. We have made minor adjustments to the Executive Summary to address feedback that was provided during the AMA, which you can see in this link.

Changes were as follows:

  1. Addition of a footnote to clarify the minimum investment amount.
  2. A correction in the summary description of assets to be included in the pool.
  3. Clarification on description of the minimum TIN ratio.

Best,
Fortunafi Team

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Thank you FortunaFi for the update!

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