13 September 2019, London – Cairn Capital Limited (“Cairn Capital”) is pleased to announce that an investment vehicle under its management has executed secured financing transactions with two leading speciality finance asset originators.
The first of these investments is in a junior note issued by an affiliate of FastPay Partners, LLC (“FastPay”), a leading FinTech-enabled U.S. originator focused on providing working capital solutions in the digital media space. The investment is part of a pioneering receivables securitisation programme having an initial tranche of $80mn. Under the financing arrangement, American International Group, Inc. (AIG) provides senior financing, specialist trade finance insurance coverage, as well as back-up servicing. Primary collateral assets include, among others, short-tenured, high-quality business receivables originated in the ordinary course of advertising technology companies’ operating activities.
Brandon Kufrin, senior portfolio manager at Cairn Capital, said: “FastPay has a demonstrated track record of satisfying the liquidity and working capital needs of media and technology companies with its differentiated, value-add product suite. This innovative investment structure positions FastPay well to meet demand from large enterprise clients for its financing and technology solutions as it continues to achieve impressive growth in its market”.
The second of these investments, a senior secured loan originated by Cairn Capital, provides an affiliate of Valour Finance Limited trading as Savvy.co.uk (“Valour Finance”), a leading UK consumer loan originator, with up to £20 million to finance loan receivable origination activities.
Brandon Kufrin said: “Cairn Capital is pleased to provide financing to Valour Finance, a pioneer in the UK’s online consumer loan arena. We believe this financing will allow Valour Finance to continue to achieve greater financial inclusion for underserved borrowers”. “Private credit assets of this type present attractive opportunities for our investment vehicles to access granular pools of business receivables and consumer loan receivables within highlystructured transactions,” said Kufrin.
“Cairn Capital remains focused on originating and structuring private debt solutions for diverse asset originators in various jurisdictions, specifically those with seasoned management teams, robust performance track records and organisational infrastructure capable of maintaining strong performance at scale.”
FastPay (together with its affiliates) is a financial technology platform that reduces friction and unlocks capital for buyers and sellers across the media landscape. Since its inception in 2009, FastPay has secured the movement of more than $6bn in capital providing access to hundreds of millions of dollars in deployable capital from partners including Citibank, Wells Fargo, and Oak HC/FT. Its leadership team brings decades of credit and payments experience from Green Dot Corporation, Capital One, Morgan Stanley, Goldman Sachs, and Skrill. Headquartered in Los Angeles, FastPay has offices in San Francisco, New York, London, and Boston. Visit www.gofastpay.com.
About Valour Finance
Valour Finance Limited is a UK originator of consumer loans to underserved borrowers. Valour Finance, under its trading name Savvy.co.uk, offers loans from £300 to £3,000 which can be repaid between 8 and 24 months to UK applicants who seek to access affordable, sustainable and ethical credit. Since its inception in 2007, Valour Finance has lent more than £28mn to date to over 74,000 customers. In May 2019, the UK’s commercial and consumer credit industry publication ‘Credit Strategy’ recognised Valour Finance as “Responsible Lender of the Year”.
About Cairn Capital
Cairn Capital Limited (“Cairn Capital”) is a European alternative credit manager and an affiliate of Mediobanca S.p.A. Cairn Capital was founded in 2004 and provides a full range of credit asset management and advisory services. As at 30 June 2019, Cairn Capital had over $4.5bn in assets under management or advice1. Funds and accounts managed or advised by Cairn Capital invest in a diverse range of credit assets which include, among others, private credit and speciality finance. Please see https://www.cairncapital.com/ for additional information.
For further information on Cairn Capital, please contact:
Cairn Capital Investor Relations
Tel: +44 (0)20 7259 4800
This document has been issued by Cairn Capital Limited which is authorised and regulated by the Financial Conduct Authority in the United Kingdom, registered as an investment adviser with the United States Securities and Exchange Commission, registered with the United States Commodity Futures Trading Commission and a member of the United States National Futures Association.
This document is provided for information purposes only and does not constitute an invitation, solicitation or offer to buy or sell any securities or investment or to enter into any agreement and neither Cairn Capital Limited nor any of its affiliates is soliciting any action based upon this document. In particular, it is not an offer or sale of securities in the United States or to, or for the account or benefit of, any United States person (as defined in relevant United States securities laws, including residents of the United States or corporations, partnerships or other entities organised in the United States). Accordingly, no reliance should be placed on the information in this document.
1 Assets under management or advice figure includes collateralised loan obligations (CLOs) under management of Cairn Loan Investments LLP. Cairn Loan Investments LLP is not an affiliate of Cairn Capital but it was established by Cairn Capital and Cairn Capital provides support services to it.