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Case Study: 'I Like To Dive Into The Detail'

Back in 2017, Wellington program/project manager Adam Dearsley says he was looking for something new to add to his investment portfolio.

5 October 2021

He was already an experienced investor, with a diversified range of commercial property, equity and fixed interest investments in his portfolio.

“When I read a business article that mentioned peer-to-peer platform Zagga, I decided to dig a little deeper.”

Zagga is an online platform matching investors to borrowers. Investors fund loans in full or in increments of NZ$1,000.

Dearsley says he likes that he knows exactly where his money is going and what it’s funding.

He was already investing with another peer-to-peer platform, but he says Zagga was different enough to pique his interest.

“Generally, my priorities for fixed interest investments are higher returns than I’d get through bank investments, while still offering reasonable security for the risk profile,” he says.

“I was already involved with one peer-to-peer platform, but it was based around hundreds of tiny parcels of money contributing to relatively low-value loans and with zero tangible security.

“I liked that Zagga offered fewer loans but of higher value, with very good security, a user-friendly platform and excellent client service.

“After a little more investigation I started working with them as well.”

Dearsley says when he’s choosing which loans to invest in, it’s vital to be across all the variables.

He says Zagga had a straightforward, administrational approach. To help investors with their decision-making, each loan is assigned a Credit Assessment Score (CAS).

The gradings are based on data about the borrower and include serviceability, credit history and the loan-to-security value ratio (LVR). Investors access the information on a secure online portal.

Says Dearsley: “Each loan is given a high-level summary, with the option to dive down into additional detail and documents. I can check the LVR, the returns, location and the term of investment, all with just a few clicks.

“Having that information so accessible made me feel secure right from the start.”

Dearsley invests under a company he launched, but he’s also a busy IT project manager working on contracts in and around the capital, so day-to-day life can get pretty hectic.

He says this means his investments have to be as effortless as possible.

“That’s why I appreciate the convenience of Zagga,” he says. “Their model fits in with my lifestyle and once you’ve put in that little bit of effort up front, it’s all smooth running from there.”

Dearsley says he’s been getting consistently good returns, which have increased his confidence over time.

“When investing, I generally look for between 7 per cent and 10 per cent return, and those are the kind of figures I’ve been getting with Zagga.”

Dearsley says he’s found the team “approachable, responsive and thorough”.

“In 2018, their due diligence uncovered some crucial questions about one particular opportunity.

“How they acted on that occasion gave me even more confidence and trust in the team and the transparency of their processes.”

Dearsley has continued to invest in increasing amounts with Zagga and says he plans to keep investing.


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