Cap-Inves provides investment solutions in the private lending sector.
Since the financial crisis, the banks’ contributions to the real economy have fallen sharply due to new Capital Requirements Directive IV under Basel III, which has shrunk their loan books. This has pushed new ventures and existing firms to seek financing outside the traditional financial system. Such financing system enables firms to operate efficiently and to keep their competitive edge.
On the investment side, investors are moving towards the private debt investments due to their accrued diversification compared other asset classes: bond-like volatility, equity-like returns which provide a reliable revenue stream. These characteristics have made these instruments very attractive.
There are three appealing investment solutions within the private lending sector on which Cap-Inves focuses:
Asset Based Lending:
Lines of credit that are secured by the company’s assets. Such investments are essentially unleveraged and are collateralized.
The term “factoring” refers to the outright purchase of accounts receivable at a discount from their face value, providing businesses with quick working capital. Such investments are typically collateralized by the end beneficiary.
A type of short-term loan typically made to businesses and for the acquisition real-estate, usually maturing within a year. Like other types of private lending, bridge loans have higher interest rates than traditional banking loans and are collateralized by the end client.