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Complex Financings
Financeable businesses that do not fit a standard bank loan.
Complex financings exist when the business is financeable, but the situation does not allow for a typical bank loan. This can be due to an imminent acquisition, complex group structures with minority partners or emerging market subsidiaries preventing group guarantees, or difficult-to-value collateral.
Typical scenarios
- An acquisition financing where traditional bank debt is not available or not feasible because it takes too long or is too restrictive, for example where PIK is required until synergies are achieved
- Complex group structures with emerging market subsidiaries, joint ventures or subsidiaries with minority partner stakes
- Sizable revenues in volatile-currency jurisdictions
- Difficult-to-value collateral, for example used machinery or undeveloped land that has no planning permission
What we look for
- A clearly defined repayment scenario such as a refinancing following the achievement of M&A synergies, proceeds from group structure simplifications or other forms of strategic alignment
- Collateral that can offer downside protection even if difficult to value
Instruments
Senior secured and asset-backed loans (ABLs), bridge and acquisition financings, mezzanine, HoldCo and PIK (payment-in-kind) loans.