Simpler Funding provides the middle market a doorway to private debt financing. We leverage our expertise to advise middle market businesses through the process of obtaining capital from this rising asset class.
Our advisory firm adapts institutional level service and strategy to the middle market. Our team can structure, execute, monitor and service the transaction, ensuring that you can stay focused on the business while the experts stay focused on the financing.
Institutional portfolios seeking diversification of credit exposure is fueling a global expansion of middle market lending. Simultaneously, banks are reducing lending to the middle market in an effort to rein in their balance sheets and grapple with the recent post-crisis regulatory environment.
For the foreseeable future, middle market lending will continue to draw the focus of institutional investors, while shifting towards the mainstream. Simpler Funding will position your business to benefit from this unprecedented growth in capital.
Private debt teams focused on lending to the middle market are emerging at a fast pace and across a wide range of institutional types. Insurance companies, family offices, and alternative asset managers are just a few examples where this asset class is taking shape. The diversity and influx of new money is providing companies with distinct benefits compared to traditional lending.
In the private debt marketplace, a company can access unique capital structure options where covenants are flexible and credit support can take multiple forms. Pricing has also become more competitive and deal execution faster as the scope and number of players in the space has risen. This opens up many novel financial products for middle market businesses that are unable to use traditional methods of raising capital like bank financing or a public offering.
“Over the longest period for which data are available, private debt has outperformed two key fixed income indices, Global High Yield and US Investment Grade.”
Source: ICG The Rise of Debt as an Institutional Asset Class
The strong performance of private debt continues to attract more institutional investors looking to add stability to their portfolios.
"North America-focused fund managers continue to have the most capital available as of June 2016, as dry powder reserves for funds focused on the region increased to $129bn."
Source: Preqin Quarterly Private Debt Update Q2 2016
The high volume of unused capital gives businesses looking for financing greater leverage in negotiating terms and access to cheaper capital.
"Institutional investors have largely increased their exposure to the private debt asset class since 2009, and private debt increased in prominence again in 2015."
Source: 2016 Prequin Global Private Debt Report
Increasing demand leads to increased competition. This gives businesses flexibility in selecting different financial products and investors that will help grow your business.
"While 83% of private debt investors are located in either North America or Europe, this represents a decrease of five percentage points from the previous year, indicating that investors in Asia & Rest of World are increasing their exposure to the asset class."
Source: 2017 Preqin Global Private Debt Report
Finding the right investor is hard work. Even if you have an investor, how can you be sure their goals are aligned with yours? We will craft a pitch and presentation materials to make sure you are highlighting the key information. We consider your strengths and weaknesses to make sure you are targeting the most interested investors.
The Simpler Funding network of insurance companies, family offices, alternative asset managers, and international private investors offer a multitude of capital structure options. Our partners have different goals - let us find you a deal that matches yours.
Securing funding takes times, hard work, and persistence. Be prepared to explain your financial condition, sell investors on your ideas, and negotiate hard for the best offers. Understanding the financial landscape is key to knowing how much leverage you have. Our in-depth funding analysis of your business and the market conditions show you what terms you can expect, how to negotiate the best terms, and the impact financing will have on your future goals. Feel confident speaking with the toughest investors.
We make sure raising money in the future will stay Simpler.
Simpler Funding provides comprehensive and expert advice for middle market businesses seeking financing. Our in-depth research and proven strategies connect entrepreneurs with the best funding option for their goals.
Contact us today.