NWX Consorcio LP · Seed round · Regulation D, Rule 506(c)
Persistent inflation did not only raise prices. It closed access to credit for nearly half the country.
NWX Consorcio does not lend and issues no debt. Members fund each other through a supervised structure and acquire assets without ever passing a credit approval. The model has run in Brazil for more than 60 years. We are building the U.S. equivalent.
Each dot is one in every 100 U.S. adults.
- 47
- hold a subprime credit file, or none at all
- 53
- can borrow on prime terms
Already standing in the United States
- 3
- U.S. offices, with advisors on site
- Live
- Member app on the App Store and Google Play
- Delivered
- Credit letters issued at assembly
- Delaware LP
- Segregated custody at FDIC-insured banks
The problem
Inflation closed the credit system, and it has not reopened
Persistent inflation pushed rates up, and lenders answered the way they always do, by raising the bar in front of the money. Credit did not simply get more expensive. It stopped being available to a large part of the population, and roughly 47% of adults now sit outside the prime system with a subprime file or none at all.
Price is only half of it. A household can be able to carry the monthly cost and still be refused, because the decision is made on a credit file rather than on capacity to pay. Where approval does come, it now costs 7.2% a year, compounding to $559,000 of interest on a $400,000 home, and it asks for about $88,000 in cash first.
For someone without an SSN there is no gate to pass. No file exists to be scored, so there is no approval to be had at any level of income.
Millions of people are not excluded for lack of effort. They are excluded for lack of an alternative.
What NWX Consorcio is
A regulated asset-acquisition system, not a savings club
Consorcio is the wrong thing to picture as a tanda, a susu, a chit fund, or a Rotating Savings and Credit Association. Those are private arrangements between people who know each other. This is an administered financial product with a sixty-year regulatory history, and the difference is structural rather than a matter of degree.
Members join a group
Each commits to a fixed monthly contribution toward a defined credit value, over a term of 24 to 360 months.
The group allocates monthly
Members are selected on bid, payment punctuality and seniority. It is not a lottery and not a rotation.
A credit letter buys the asset
The selected member acquires the asset outright as a cash buyer, and keeps contributing until the term completes.
| Dimension | Informal savings club or ROSCA | NWX Consorcio |
|---|---|---|
| Legal form | A private agreement between the members | A Delaware limited partnership with a named general partner |
| Where the money sits | With whoever organises the group | Segregated accounts at FDIC-insured U.S. banks |
| Who is accountable | No entity, if it fails | The general partner, under D&O cover and audited annually to GAAP |
| How the turn is decided | Rotation, lot, or social agreement | Objective criteria: bid, payment punctuality, and seniority in the group |
| What the member receives | Cash from the pot | A credit letter used to buy the asset outright, as a cash buyer |
| If a member stops paying | The remaining members absorb it | A reserve fund of 5% of AUM is held against default |
| Credit record | None. Paying in never counts for anything | Opt-in reporting to Equifax, Experian and TransUnion |
| Regulatory heritage | None | 60+ years under Central Bank of Brazil supervision, Law 11.795/2008 |
The solution
Take the lender out, and the approval goes with it
Members contribute monthly into a segregated pool, and each month the group issues credit letters on objective criteria. The recipient buys the asset outright as a cash buyer. No money is lent to anybody, so there is nothing to underwrite, nothing to approve, and no interest to charge.
| Dimension | Getting credit today | NWX Consorcio |
|---|---|---|
| What has to be cleared | A lender's credit approval, which about 47% cannot pass | There is no credit approval in the process |
| Documents accepted | SSN plus an established credit history | Passport, ITIN, SSN or EIN |
| Who decides your turn | A lender's underwriting department | Group rules: bid, payment punctuality, and seniority |
| Cash before you start | $88,000 average down payment | $0 down |
| Cost of the money | 7.2% a year, compounding. $559,000 on a $400K home over 30 years | No money is lent, so no interest is charged at any point |
| Total cost of the arrangement | Interest, plus origination and monthly fees | One administrative load of 19% of credit value, fixed on day one |
| When inflation pushes rates up | Approval standards tighten and the door narrows further | Terms are fixed at enrolment and do not move with rates |
Mortgage and subprime figures are market rates used for illustration, not quotes. Allocation timing is set by objective monthly criteria and is not promised to any member on any date.
What we are building
Brazil proved the mechanism. We are constructing the institution around it here.
The mechanism itself is public and sixty years old. What makes it safe to run at scale is everything wrapped around it: a supervisor, an accountable administrator, ring-fenced custody, and a way into the consumer credit system. Brazil has all of that. This is the U.S. equivalent, piece by piece.
| Pillar | What makes it work in Brazil | What NWX is building in the United States |
|---|---|---|
| Supervision | Central Bank of Brazil, under Law 11.795/2008 | Delaware LP with an SEC posture: Form D filed under Reg D 506(c), and Regulation A+ Tier 2 qualification being pursued |
| Who administers the group | A licensed administrator holding and allocating the group funds | NWX Management LLC as general partner, covered by D&O insurance and audited annually to GAAP |
| Protection of member money | Funds ring-fenced by regulation | Segregated custody at Bank of America and JPMorgan Chase, separate from partnership funds |
| Running the assemblies | Administrator runs monthly assemblies and issues credit letters | Published member app handling the assembly calendar, bids, results and balances |
| Reaching members | Sixty years of public familiarity with the product | Three offices with advisors on site in Atlanta, Orlando and Miami |
| Credit system integration | Participation recorded inside the consumer credit system | Opt-in reporting to Equifax, Experian and TransUnion |
Brazilian figures throughout this site describe the consorcio model across that market and are not NWX results. Regulation A+ Tier 2 qualification is being pursued and has not been granted.
Traction
What is already in place today
The entity, the custody and the physical presence exist. The member app is published and credit letters have been issued at assembly. This is what the $2,000,000 is being added to.
- Physical offices
- Three
- Atlanta (HQ), Orlando and Miami, with advisors on site rather than a virtual footprint.
- Member application
- Live
- Published on the App Store and Google Play by Nwx Management LLC. Handles assembly calendar, bids, results and balance tracking.
- Credit letters
- Delivered
- Contemplation assemblies are running and members have received credit letters.
- Legal entity
- Delaware LP
- NWX Consorcio LP, with NWX Management LLC as general partner.
- Custody
- Segregated
- Member contributions held at FDIC-insured U.S. banks, separate from partnership funds.
- Securities filing
- Form D filed
- Regulation D, Rule 506(c), with accredited status verified before subscription.
How the revenue is earned
A single fixed administrative load of 19% on credit value, charged instead of interest and set at the point a member enrols. It does not float with rates, credit cycles or asset prices. Partnership revenue is a function of one variable: how many members are contributing, and how much.
Market
Every member is worth $1,140 a year in revenue
Built from the bottom up rather than from a market report, using the same assumptions as the financial model.
$500
Average member contribution per month
$6,000
Contributed per member per year
19%
Administrative load on credit value
$1,140
Revenue per member per year
At 12,500 members the load is $14.25MM a year, which is the upside case in the published model. The model reaches it by growing enrolment, not by raising price, because the price is fixed by contract at the point each member joins.
Credit values and instalments adjust annually with CPI-U, so the base the 19% is charged on tracks inflation rather than eroding against it. The projections do not assume this. They hold the average contribution flat at $500 across every year and every case.
Competition
What members are choosing between
The alternatives split into two groups: options that charge heavily for access, and options that are affordable because nobody is accountable for them.
| Option | Cost | Why members leave it |
|---|---|---|
| 30-year mortgage at 7.2% | $559,000 interest on a $400K home | Requires $88,000 down and a credit file that about half the country does not have. |
| ITIN or subprime loan | Rates above 10% | Available to more people, at a price that transfers most of the value to the lender. |
| Informal savings club | No fee | No legal structure, no custody, no recourse if the organiser stops paying. |
| Saving alone | No fee | Asset prices move faster than the savings rate for most households. |
| NWX consorcio | 19% fixed, no interest | Structured, audited and held in segregated custody, with the total cost known on day one. |
The barrier to copying this is the wrapper, not the idea
The mechanism is public and sixty years old. Running it lawfully in the United States is the hard part: a Delaware partnership, segregated custody at FDIC-insured banks, D&O cover, independent annual audits, credit bureau reporting, physical offices, and a securities posture that survives scrutiny. That structure took time and money to assemble and it is what a new entrant would have to reproduce before signing a first member.
Vision
Brazil runs this at 12.76 million participants. NWX is building the U.S. operator.
Consorcio was created in Brazil in the 1960s as an answer to interest rates that made borrowing irrational for ordinary buyers. It now has 12.76 million active participants and has delivered more than R$1 trillion in credit letters, supervised by the Central Bank of Brazil under Law 11.795/2008. Those are figures for the Brazilian market as a whole, not NWX results.
The conditions that produced it in Brazil are present in the United States now, in a larger consumer credit market, with roughly 47% of the population outside the prime credit system. There is also an audience that already knows the product by name and does not need it explained. NWX is building the operator for that market.
Use of funds
The bottleneck is headcount, not demand
Lead generation already outpaces the team available to work those leads. The market is answering, and the constraint sits on our side of the table: there are not enough people to pick the demand up. This round is spent principally on marketing and sales headcount, so that what already arrives can be served.
What is happening now
More qualified demand reaches NWX than the current team can work. A lead that waits is a member who may never enrol, and the administrative load that member would have carried never reaches the partnership.
What the capital buys
People. Principally marketing and sales, so that lead generation and the capacity to answer it stop being out of step with each other.
What that converts into
Every member added is worth $1,140 a year in administrative load. Revenue scales with members served, and members served scales with people employed to serve them.
$2,000,000
Raised across 20 units of $100,000
10,000
Participants by 2028, base case
$60MM
Annual AUM by 2028, base case
Investor capital is repaid from a share of the administrative load the partnership already collects. Across the full 3-year term a $100,000 unit is projected to return its capital plus $24,000 of interest, with an option to convert any remaining balance into equity in the general partner. Interest is 8% of the capital base each year, so it does not vary with the case.
20 units of $100,000, 3-year term, 8% a year
Accredited status is verified before any subscription is accepted. Request the offering documents and we will follow up with the verification process.
Request the offering documentsThis website is for informational purposes only and does not constitute an offer to sell, or a solicitation of an offer to buy, any security. Any offer is made solely to verified accredited investors through the confidential offering documents for NWX Consorcio LP, which should be read in full before any investment decision.