How does Investec look at private equity professionals’ income differently?

Nearly half (43.5%) of private equity (PE) professionals surveyed as part of Investec’s 10^th annual GP Trends survey feel that lenders struggle to understand their income, which could make it difficult for many to build meaningful banking relationships and secure funding.

Private Banker Martyn Smith notes “We’re able to consider things like bonus payments, carried interest, co-investment or foreign currency income when examining affordability, looking at a client’s entire situation.”

Investec has a dedicated team of specialist bankers focusing on the PE sector, each with an in-depth understanding and wealth of experience in lending to clients in this space. We understand the nuances of their income profile and asset base and how that can vary from firm to firm.

We’re particularly comfortable working with people who are at the inflexion point of their career, whose income or employment status has recently changed as a result, adding value when we extend finance to them. 

Private Banker Charlotte Seward adds, “Investec has a reputation for winning deals with clients when they’re on an upward career trajectory. We take a pragmatic view of income and assets and can be forward looking in terms of a client’s ability to service debt. For example, a new Partner will go from being employed to self-employed, so we can look at their track record and firm’s history to assess the affordability.”

Real-time communication is also important. Investec’s Private Bank credit function reviews every day, which Charlotte points out, “helps us make decisions quickly. Speed is often of the essence and this allows our clients to be nimble in competitive processes."

We’re able to help clients with lending, transactional banking, foreign exchange (FX) and deposits, as well as working with our corporate banking (CIB) and wealth and investment (W&I) teams to present private equity professionals with a truly holistic offering.