Henwick Park – Fund raising in the Fixed Income, Credit and Trade Receivables Sectors
Henwick Park have been operating for over nine years with asset management partners, focusing on fund raising across all asset classes, both in the UK and globally. In this regard, the team bring over 80 years’ experience in world-wide jurisdictions and markets. Additionally, we work in partnership to raise both equity, seed and debt finance, set up mirror funds e.g. Luxembourg domiciled and have a strong connection for third party research. We also facilitate the buying and selling of IFA firms.
In these times of rising global inflation and high volatility/low returns in equity markets, institutional investors are seeking reduced risk opportunities with lower levels of correlation with the traditional markets. On the supply side, we have noticed the increasing development of alternative finance/credit opportunities for business start-ups and SMEs as the traditional sources of finance become less accessible and more costly. These opportunities range from the financing of alternative investments e.g. the agri-renewables sector to the financing of trade receivables, utilising ever more sophisticated risk profiling techniques.
We have been working this year with an asset management client with global fixed income and global credit funds involving both sovereign and corporate debt with a collective AUM of c£750 million. We also have a client who facilitates numerous bond propositions in the green and commodity sectors.
This year in particular however, we have been approached by fund managers with a variety of debt and credit finance propositions. One example is a US based manager providing a trade receivables solution for lower risk SMEs in Latin America. The SMEs themselves supply goods and services to top brand multi-national companies and have a long-established record of invoicing activity. In terms of risk assessment, this is undertaken by obtaining the SME’s agreement to access the internal revenue taxation system which confirms when invoices have been paid previously and the duration of the debt. Going forward, the manager controls payments in and out on behalf of the SME and the fund may for example, lend up to 75% on a 90-day invoice, providing double digit returns to an investor.
As mentioned above, there also seems more appetite for alternative investments. We have been working with a fund manager with a number of fund propositions focused on the financing of SMEs in the UK. Probably the most interesting is a fund that provides finance for agricultural plant, structured to produce renewable energy – specifically with non-human waste as the material to produce gas, fertilizer etc. Needless to say, this ticks all the boxes in respect of ESG credentials as well as providing current support and a potential long-term solution for our energy needs, which have never been more in such stark focus. The fund was launched 13 years ago with approximately £225 million current AUM, very low volatility, consistent absolute returns in most market conditions and with a target capital appreciation of 5-7%.
Managing Director of Henwick Park, Andy Wills, states: “Unsurprisingly, we have noticed an increased appetite for finance investment opportunities and this has been coupled with a desire to embrace new options to the traditional credit, fixed income and bond offerings, as a supplier, borrower and investor.”
Henwick Park are based in Worcester, UK and Andy Wills can be contacted at 01905 697994 or via email a.wills@henwickpark.co.uk
8 FEBRUARY WEBINAR: SME FINANCING
To register for our 8 February webinar on SME FINANCING please CLICK HERE.
WEBINAR 8 FEBRUARY: SME FINANCING
Credit Today and Henwick Park will hold a joint webinar on Wednesday 8th February 2023 between 12 noon (event starts 12.05) and 1pm
- If you have any questions in advance on the below topics, please submit.
AGENDA
12.05 INTRODUCTION, from Credit Today (publishing director, Gerard Dugdill).
12.10 QUICK-FIRE MARKET REVIEWS (5-7 mins each):
Mike Owen, Business Development Consultant, Henwick Park, & colleagues
- MAJOR EXISTING FINANCE & OUTLOOK
- EXISTING DEBT FINANCE OPPORTUNITIES
- MARKET OPPORTUNITIES NATIONALLY AND GLOBALLY
- GROWTH IN ALTERNATIVE FINANCE OPPORTUNITIES FOR BUSINESSES AND THE INVESTOR: agri-bonds, green bonds, receivables
12.40 OPEN DISCUSSION
12.55 FINAL REMARK AND CLOSE
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To register for our 8 February webinar on SME FINANCING please CLICK HERE.
