April 28, 2018

Capital Section


VCAP Capital and Lender Finance Group is the firm’s investment platform dedicated to providing secured asset-based loan financing to financial services and specialty finance companies based in Asia, Middle-East, Africa and Eastern Europe. 

Group’s objective:

  *Offers creative, clear and quick financing solutions for fast and reliable closings

  *Delivers certainty typically through fully underwritten transactions

  *Plays a strong leadership role in investments 

VCAP Capital and Lender Finance Group seeks to hold sizeable positions and play a leadership role in our investments. Our focus on underwriting the underlying value of the financial assets allows us to provide creative solutions. We are dedicated to providing financing solutions for transactions greater than $5 million. These fully underwritten financings could be used to finance ongoing originations, finance an existing pool of financial assets originated by an issuer or to finance the acquisition of a pool of financial assets by a buyer. 

Committed Financial Services and Specialty Finance Focus. Our deep understanding and knowledge of underlying financial assets allows us to continue to provide financing opportunities. 

Client Relationship. We create a strong, lasting relationship with issuers as we understand the fundamentals of their businesses which not only allows us to grow with them, but also allows us to quickly identify potential problems and manage them effectively. 

We provide financial services and specialty finance companies with a complete financing solution for their financial assets. Our capabilities present prospective and existing clients with clear advantages. 

Responsiveness and Creativity. We deliver clear, quick and thoughtful responses. We are a full service provider with a substantial investment in back office capabilities, and sophisticated and experienced management teams with the ability to think outside traditional credit parameters. 

Fully Underwritten Transactions.  We seek to fully underwrite our transactions to eliminate syndication risk for our clients. 

Risk-Adjusted Return Investing. We assess and price risk based on our extensive knowledge of the underlying financial assets. We have a unique prospective on asset performance that allows us to maximize value for issuers. 

Investments typically have the following characteristics: 

Transaction Type: 

• Revolving Warehouse Lines: Used to finance ongoing originations of financial services and specialty finance companies based on agreed upon underwriting standards 

• Term Financings: Used to finance an existing pool of financial assets, originated by an issuer, that will liquidate over time, or to finance the purchase of a pool of financial assets by a buyer 

Investment Size/Term/Rate: 

• Greater than $5 million 

• Typically two to five years 

• Rate is risk dependent, but market competitive 

Investment Structure: 

• Senior, secured, first lien debt against financial assets typically in a special purpose vehicle 

Focus Areas: 

• Auto Finance (Non-Prime) 

• Consumer Finance (Credit Cards and Other General Unsecured) 

• Leasing (Micro-, Small- and Medium-Ticket) 

• Commercial Finance (Factoring and Small Balance Asset-Based Lenders) 

• Other Esoteric Asset Classes 

Investment Grade

The Investment Grade team advises the firm’s large, highly rated corporate clients on capital structure across debt, hybrid, derivative and equity-linked products in Asia, Middle-East and Eastern Europe. The team acts in concert with our traditional investment banking coverage effort and alongside the specific expertise of our associated product groups to execute investment grade financings.

Corporate Risk Management

Our Corporate Risk Management professionals work with corporations and financial institutions to develop and implement customized risk management strategies. The team examines exposures to interest rates, credits and foreign currencies in order to minimize risk or enhance return for its clients.

Asset Backed Securities ( content to be developed yet)