Asset based and cashflow lending

Delivering certainty to transactions

Warehouse manager checks computer while boxes are loaded
Warehouse manager checks computer while boxes are loaded

Our unique ability to blend integrated asset based and cashflow lending enables us to deliver certainty for growth, acquisitions, refinancing and wealth realisation. We’re also able to provide asset based lending (ABL) structures in isolation.


Our unique ability to blend integrated asset based and cashflow lending enables us to deliver certainty for growth, acquisitions, refinancing and wealth realisation. We’re also able to provide asset based lending (ABL) structures in isolation.


Our solutions

Up to c£50m on a bilateral basis

With underwriting and distributing capabilities for high quantums. 

Asset based revolvers

Against receivables and inventory (sometimes also fixed assets) are non-amortising and fund working capital seasonality, as well as core aquisition debt.

Term loans

Structured against sustainable cashflows (and sometimes fixed assets) to fund core debt requirements. Undrawn acquisition/capex lines can be provided as required.

Scenarios

For growth/acquisition finance (MBO/MBI or combination), buy and build, cash out, shareholder change, refinancing/recapitalisation and working capital. 

Quantum

Linked to debt serviceability.  We are not driven by arbitrary multiples or ratio splits between asset based revolvers and term loans.

Supporting privately-held corporates

Supporting both PE-backed and owner-managed corporates.

Benefits to your business

Flexibilty

Flexibilty

Asset based revolvers are the most effective aspect of ABL and allow businesses to maximise revolving funding availability for working capital, capex, acquisitions and debt service (interest and capital). This allows for absorption of operating cashflow blips and seasonality. Permanent leverage is often generated via these revolvers – no cleandown required.

Single team

Single team

We deliver transactions as a single, empowered unit. Deal team members remain the same throughout our partnership with sponsors and management teams.

Higher relative quantum of debt

Higher relative quantum of debt

For relevant businesses when compared to either a pure senior, or asset based lending approach, on a standalone basis.

Lower blended cost of debt

Lower blended cost of debt

Achieved via use of asset based revolvers (priced below typical senior cashflow debt), for a significant portion of the overall debt structure (usually 40%+).

Sector specialism

Sector specialism

Our team bring expertise in a range of sectors, including: 

  • Chemicals
  • Food & Drink
  • Manufacturing & Engineering
  • Print & Packaging
  • Recruitment & B2B Services
  • Transport & Logistics
  • Wholesale distribution

Businesses we can help

Asset-rich businesses with significant working capital or seasonal requirements

Businesses currently experiencing an inflexible debt structure

UK headquartered businesses with £2m+ EBITDA

High quality management teams in businesses that are compelling in their market

Get in touch

James Cullen
James Cullen, Head of Integrated ABL & Cashflow Lending Origination

ESG relative to ABL is interesting due to ABL's relevance to ‘old world’ industries seen as classically lower on the ESG scale.

Download

James Cullen discusses the future of ABL in a Real Deals roundtable, March 2022 PDF 7.83 MB
Alan Henderson
Alan Henderson, CEO of Allied Glass

We deal with one team at Investec, for the deal and on an ongoing basis, which is a real differentiator for us.

How we've helped other businesses succeed

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About our team

Investec's Asset Based & Cashflow Lending offering forms part of the Growth & Leveraged Finance (G&LF) team. G&LF has been supporting the UK and Europe mid-market by lending to growth businesses for over 15 years. The 30+ strong team offers lending, private debt and capital markets capabilities to its private equity and corporate client base, spanning asset based and cashflow lending, senior secured debt (standalone, club/syndicate loans), RCFs, subordinated debt and minority equity. We originate, structure and provide debt solutions to growth orientated clients with EBITDA typically £2m-£75m EBITDA.

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Download our Asset Based & Cashflow Lending factsheet PDF 2.36 MB

We keep earning our stripes

Bank of the Year winner, Real Deals Private Equity Awards 2019

Drawdown Awards

Fund Finance Provider of the Year

2021

Investec Bank of the Year winner, the Private Equity Awards 2020

Private Equity Awards

Bank of the Year

2020 & 2019

Winner, Bank Lender of the Year 2018

British Private Equity Awards

Bank Lender of the Year

2018