Corporate & Acquisition Finance

Creative capital solutions provider for the Australian mid-market

 

Investec is an active arranger & lender in the Australian mid market. Our debt solutions are always customised to individual circumstances. They are not product led or constrained by market terms or precedent.

  • We typically assist our clients with financing packages that assist in their valuation creation plans
    This means the borrowing requirements we fulfil are often event driven, and focused on specific situations, including:
    • Leveraged and Management buyouts
    • Recapitalisations and Shareholder restructurings
    • Investment Gearing
    • Growth Capital
    • Fund Finance - Capital call facilities; GP financing, Secondary leverage and portfolio lending
  • We have a flexible mandate to underwrite, arrange or participate in transactions
    We can structure around future cash flows or existing assets; and can provide standalone or integrated solutions to cover the entire capital structure including:
    • Senior secured debt,
    • Stretch senior,
    • Unitranche and subordinated facilities,
    • Bridging solutions

We pride ourselves on our straight forward approach and ability to move a position of deliverability quickly. Our main focus in on committed facilities of $10m+.

Acquisition Finance

 

We provide flexible, debt-based structures to facilitate change of control transactions. Loans can be structured around future cash flows of the business, or more flexible unitranche solutions. Typically, we facilitate M&A, MBOs, dividend recapitalisations and capex programmes. The team draws on Investec’s international resources, with substantial operations in the UK and South Africa.

Investec is an active arranger and lender in the Australian mid-market. Our debt solutions are always customised to individual circumstances. They are not product led or constrained by market terms or precedent.

Asset Based and Cash Flow Lending (ABL)


Borrowers and financial sponsors are becoming increasingly aware of ABL as a simple and inexpensive way to unblock monetary value and boost liquidity from the balance sheet for:
  • What we do

    • Fund event-driven transactions such as buyout, acquisition, recapitalisation
    • Transaction size A$10m to A$50m range
    • Ability to hold significant quantum — Investec’s largest hold to date £110m (A$190m)
    • Blended debt structures against balance sheet assets and cashflows
      • Revolver — non-amortising debt against receivables and inventory
      • Term lending — leveraging fixed assets and cashflows
  • Target Market

    • Mid-market companies with large asset-rich balance sheets where at least half the assets comprise of W/C assets
    • Typical industries include manufacturing, retail, wholesale distribution, manufacturers, import/exports and services (eg. transport, equipment rental, recruitment)
    • Many of the borrowers will have low margins and/or fluctuating EBITDA to support required debt levels on a cash flow basis
  • Features

    • Combination of ABL and cash flow lending provides greater quantum and lower amortisation
    • ABL Revolver optimises availability against W/C assets to fund opportunities with no amortisation unlike a cash flow loan or hard wired O/D limit
    • ABL Revolver determined by Borrowing Base with availability against  W/C assets. More liquid the asset, the higher the advance rate & availability.
    • ABL Revolver and term loan ideally suited to fund acquisition transaction, working capital, growth and seasonal trading
    • ABL is better placed than Cash Flow Lending to manage sensitivities in earnings caused by fluctuating markets, underperformance etc.
  • Acquisition

    • Use of target companies assets to finance an acquisition
    • ABL can be a better option than cash flow loan as the former can release cash and reduce debt service amortisation by virtue of the ABL Revolver (i.e. no cash sweeps)
  • Growth

    • ABL Revolver is scalable and suitable to fund business expansion for W/C, capex and high organic growth
  • Capital structures

    • The refinance of debt maturities, fund capital repurchases, shareholder loan repayments and dividend payments can frequently be met by ABL facilities
  • Leverage tolerance

    • ABL is well placed to accommodate for sensitivities in earnings caused by fluctuating markets, underperformance, etc.
    • Key is quality and performance of collateral, and adequate earnings base to support Fixed Charge Coverage ration ("FCC")

Fund Finance


Benefit from smart lending principles while tapping into the extensive experience and expertise of a global team.
  • Fund finance

    Seize opportunities as they arise. Our specialist Fund Finance team can help funds and fund managers with flexible, agile and strategic finance solutions.
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  • Funds

    Financing solutions for funds, helping optimise your equity commitments.
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  • Secondary funds

    Strategic funding for secondary funds. Flexibility at all stages of the fund life cycle.
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  • Funding for limited partners and institutional investors

    Work with an experienced financial partner that recognises that every fund is unique and benefit from a finance solution that is tailored to you.
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  • Funding solutions for general partners and fund managers

    If you need to secure finance to free working capital or fund a strategic initiative, our experienced team can support.
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  • Secondaries and Fund of Funds insight

    Our insight events bring together industry leaders and advisers and provide guests with updates on industry trends and issues.
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