Long-term flexible facilities that maximise liquidity and support the growth of your portfolio companies
As a private equity owned asset based lender, we understand that the flexibility of our funding gives you the ability to manage portfolio companies going forward without having to go back to the bank for approvals.
We’re seeing asset based lending used more and more as part of the private equity funding mix in deal structures when the target company has significant tangible assets. In these circumstances, ABL can be combined with a cash flow strip to deliver a higher level of funding.
IGFs solutions are scalable and work well in M&A and MBO/MBI scenarios. For companies targeting rapid growth, are subject to seasonality, require higher levels of working capital, are executing a turnaround, or are in cyclical or lower margin industries, we provide an ideal funding source.
Flexibility & scalability are key attributes of asset based lending
Advantages of working with IGF;
- Limited covenant structure
- We provide early commitment to a transaction, simplicity and flexibility, ease of execution, and a high degree of certainty to close
- We can deliver a higher level of leverage through a revolver against current assets, namely receivables and stock, alongside a term loan against fixed assets
- ABL allows PE players to maximize the debt capacity of the borrower
- Our ability to define opening availability and collateral headroom at an early stage in the deal provides good visibility to map out the pro forma capital structure
- ABL provides access to liquidity as an alternative to conventional financial mechanisms, such as bank loans or overdrafts
- If a company’s performance does deteriorate, asset based lending gives you the flexibility to execute a turnaround or restructure
- When the time comes, we’ll help you effect an efficient exit as ABL works well in trade sale, secondary buyout, and leveraged recapitalisation scenarios
Partner with a lender that can grow with you
We provide close relationship management with private equity houses and their clients. We place high levels of commitment and flexibility on documentation to reflect the nature and demands of private equity investments.