Structured Finance’s international team of 40 experienced, multi-disciplinary professionals arranges and participates in tailored structured finance solutions for corporate clients with specific financial objectives, who may face specific credit/solvency, fiscal, accounting or legal/ regulatory challenges.
The Structured Finance team offers three distinctive product categories:
Junior Capital includes all corporate financing ranking between (super) senior debt and straight equity. This could vary from preferred equity, profit participating loans, PIK loans, mandatory convertibles, pre-IPO financings, second lien loans, subordinated debt to equity financing.
Vendor Finance involves assisting clients to stimulate their sales by financing the (potential) buyers of their products. This includes direct financing, finance programmes (with limited recourse), or structures in which risks are insured by third parties.
The drivers behind structured finance solutions are diverse. The main trends include companies seek to concentrate on their core business and improve their return on capital. Structured finance enables this, through focusing on, among others, a reduction of working capital or the removal of certain fixed assets from the balance sheet, for instance through sale and leaseback or repurchase agreements. In addition, a growing need to monetise contracts (future cash flows) is identified. Moreover, we structure funds to support our clients’ suppliers or buyers and manage the special purpose vehicles established for this purpose.
Examples of areas where Structured Finance can assist:
- Mezzanine and subordinated debt financing
- Vendor finance
- Alternative funding structures
- Structured term funding
- Supply chain finance (including recourse and non-recourse structures)
- Structured deposit solutions
- Off-balance-sheet or complex asset financing
- Leasing structures
- Brand financing and monetisation of intellectual property cash flows
- Tailored solutions for co-operatives (capital/supply chain)
- Inventory solutions
- Bespoke solutions
- Sale and leasebacks
- Joint venture financing
- Specific fund structures