Private equity
Optimise the financing of your portfolio companies.
Private equity financing needs
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 three months)
- Resilient to changes in shareholding
A closer look at factoring operations for private equity funds
Factoring s 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
Research, tender process and implementation of an off-balance sheet factoring agreement in less than three months
What we did
- Research and tender process with factors and credit insurers, in an emergency context (under three months)
- Implementation of a syndication process due to the significance of the credit line requested (€400m)
Background
Assignment of a large industrial group taken over by an investment fund
Features
- Business activities: glass packaging
- Countries: five European countries
- Clients: all types
- Type of contract: Confidential balance assignment
- Credit line: €400m
- % of financing: 97% of assigned receivables
- Cost: less than 1%
- Term: five years
- Credit insurance: delegated
Aim
To take receipt of the financing from the factor on the date of takeover by the investment fund, a prerequisite for completion of the takeover
Our added value
- Faster decision-making processes: credit committee approval received in just four weeks
- Support and consultancy offered to the client throughout the project
- Weekly estimate 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.)
- Training of local teams
