Private Equity

Optimise the financing of your portfolio companies.

Private Equity financing needs

Financing organic or external growth of your portfolio companies

Increasing the financial autonomy of your portfolio companies, in particular following a spin off or a carve out

Enabling the financing of an external growth or a new corporate project

Streamlining the distribution of dividends to shareholders

Refinancing your takeover debt

Limiting your debt ratio

The benefits of factoring

Sustainable financing solution
Long-term confirmation
Off-balance sheet treatment in accordance with IFRS, French GAAP and US GAAP
Quick roll-out (circa 3 months)
Resilient to changes in shareholding

A closer look at factoring operations for Private Equity funds

Factoring is a secure strategy for financing cashflow requirements for B2B companies. It is a financing method increasingly being chosen by Private Equity funds for their portfolio companies.

Confidential factoring is considered to be more effective and reliable than revolving credit.

When should you consider factoring as a solution?

Before signing

Between signing and closing

At closing

Post-closing

Before an assignment

Business Case

Our assignment

Study, tender process and implementation of an off-balance sheet factoring agreement in less than 3 months

What we did

Study and tender process with factors and credit insurers, in an emergency context (under 3 months)
Implementation of a syndication process due to the significance of the credit line requested

Background

Assignment of a large industrial group taken over by an investment fund

Characteristics

Business activities: Glass packaging
Country: 5 European countries
Clients: All types
Type of contract: Confidential balance assignment
Credit line: €400 M
% of financing: 97% of assigned receivables
Cost: less than 1%
Term: 5 years
Credit insurance: delegated

Aim

Receipt of financing from the factor on the date of takeover by the investment fund, a prerequisite for takeover completion

Our added value

Faster decision-making processes: credit committee approval received in just 4 weeks
Support and consultancy offered to the client throughout the project
Weekly estimation of potential financing between signing and closing of the takeover, to secure the final transaction
Post launch: annual optimisation of contract parameters (increase in the financing rate, cost reduction, optimisation of credit insurance to maximum off-balance sheet financing etc.)
Local team training