Covalto

Covalto operates under a Mexican banking license, taking deposits that are insured by IPAB up to 400,000 UDIS and lending directly from its own balance sheet. It is not structured as an asset manager raising third-party funds for deployment into portfolio companies. The regulatory framework places it squarely in the deposit-taking-and-lending business, with digital origination and servicing replacing branch networks.

Covalto offers a fixed-rate deposit product, recently marketed at 9.50 percent annually for a three-year term, without a stated maximum deposit amount. Those insured liabilities fund the bank’s credit book, which consists of working-capital lines, equipment leases, and factoring advances extended to Mexican SMEs. This creates a matched-book funding model where loan pricing and volume are directly influenced by the cost and availability of customer deposits.

No public evidence shows Covalto participating in co-investments alongside general partners. Its disclosed lending products — factoring, leasing, and unsecured term credit — are all direct on-balance-sheet exposures. The bank does not promote club deals, sidecar funds, or any GP-LP relationship in its public materials.

Covalto has not published a non-performing loan ratio, net charge-off rate, or any other asset-quality metric. While the website mentions a team specialized in fraud prevention and technology safeguards, no quantitative loss data is available to outside allocators evaluating the credit underwriting engine.

The firm emphasizes credit products without traditional collateral requirements — it markets "financiamiento sin garantías tradicionales" — relying instead on digital underwriting and cash-flow analysis. Factoring is inherently secured by the receivables purchased, but the pure working-capital lines carry no pledge of hard assets according to Covalto’s public positioning.