While non-bank lenders have increasingly been able to address the emerging financing gap over the past years, the COVID crisis comes with the need of significantly increasing the pool of available credit.
Based on our data analyses, we see early evidence that certain alternative lending sub-sectors have been significantly outperforming since the onset of the COVID crisis. Driven partially by an acceleration of already existing trends of digitization and moving commerce online.
We offer investors a diversified private credit investment strategy targeting an attractive income return. Additional upside is provided through warrants and options.
AvCap finances alternative lenders in areas such as invoice financing, revenue-based lending, consumer lending and consumer goods rentals. We generally prefer granular pools of short duration revolving exposures.
The originators we finance have compelling business models, high-quality management teams, use sophisticated technology, are able to scale up and achieve positive unit economics.
We grow our investments with our portfolio companies and support their development with capital, as well as with our expertise and network.
Our investments are generally too large and too complex to execute for private investors, but often 'under the radar' for larger players.
We focus on maximizing risk-adjusted returns and create alignment of interest. Our disciplined focus on risk means that our investments generally provide significant overcollateralization and strict performance covenants.
We partner with innovative specialty finance providers filling the gap left by traditional lenders.
From factoring to revenue based lending and trade finance, we are focused on scalable lending models that benefit from recent shifts in the markets.
We work hand-in-hand with our lender partners to scale up their investments in the future of SMEs.
SMEs often no longer have access to adequate financing options provided by banks and are increasingly better served by non-bank lenders.
We finance portfolios and forward-flow originated by outstanding, responsible lenders.
Micro consumer loans and financial wellbeing focused products are examples of lending strategies, which may suit our ESG considerations well.
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