Brazilian credit recovery startup Smart Compass raised $17M from two private investors, with advisory support from Itajubá Investimentos.
Smart Compass specializes in acquiring and managing non-performing loans, focusing on portfolios from credit unions, mid-sized banks, and investment funds.
Smart Compass will use the funds to acquire up to $250M in face-value distressed credit portfolios by the end of 2025, focusing on deal sizes between $350K and $1.7M across roughly 85 transactions.
“The credit union segment has a growing supply of distressed assets and limited access to capital markets, and it’s a segment that has never been served by anyone with the necessary structure to do this at scale,” said Daniel Ramos, CEO and co-founder of Smart Compass.
Formed in 2023 as a joint venture between OR Services and Smart House Investments, Smart Compass currently manages $100M in proprietary assets and $65M for third parties.
