The Investec Group has been involved in the ABL market for over 10 years in the UK and South Africa.
Investec will focus on sponsored and non-sponsored event driven transactions (e.g. acquisition, growth, recapitalisation etc.), targeting mid-market companies with large asset rich balance sheets whose earnings levels do not necessarily meet the leverage hurdles for the debt quantum required by the company/borrower.
The blended ABL and Cash Flow Lending structure on offer by Investec will typically involve: (1) Revolver (non-amortizing against accounts receivable and inventory) and (2) Cash Flow Loan (against recurring cash flow). Where appropriate, the ABL structure can be extended to include advances against property, plant and equipment.
The ABL business will complement the existing CAF core product range including leverage finance, fund finance, corporate lending and asset finance.
Head of Investec CAF, Simon Beissel said:
“The opportunity in Australia fills the void in the ABL market following the withdrawal of GE Capital. Investec will replicate its successful UK model by offering a combination of Asset Based and Cash Flow Lending (“ABL”).
Over the past 12 months, Investec has been setting up the ABL platform which included system installation and the appointment of Furqan Badri”.
Furqan has over 15 years ABL experience covering underwriting, account management and
operations. His last role was at GE Capital where he led the ABL underwriting team.