Private Debt

What is private debt?

Private debt financing—i.e. flexible financing in the form of corporate debt provided by funds—is becoming increasingly popular among companies, particularly in the SME (small and medium-sized enterprise) segment. It is more expensive than bank financing but is characterised by much greater flexibility and a faster process that takes an average of 6-10 weeks.

01

Purpose of financing


More flexibility in the type and purpose of financing than bank financing

02

Fast process

The process of obtaining financing takes
approx. 6-10 weeks

03

Flexibility

Ability to adjust debt repayment terms and conditions to suit needs

03

Value of financing


Depending on the purpose and the fund, the value of private debt financing starts at as little as PLN 7 mn, making it available also to smaller companies

Growth financing

Capital expenditure (e.g. machinery, buildings)
Investment projects (e.g. building a factory)
Entry into new markets
Development of new products

Acquisition financing

Acquisition of a competitor
Market consolidation
Acquisition of a foreign entity
Acquisition of an organised part of an enterprise

Financing of buyouts

Buyout of passive shareholders
Management buyout

Support for succession

Transfer of the company to the next generation with a mechanism to pay out part of the money to the founder
Payment of a special dividend
Repayment of loans made to the company by its owners

Debt refinancing

Refinancing of existing bank debt
Refinancing of debt provided by other financial institutions
Additional financing for development purposes

Financing asset-light companies

Financing of development targets
Supporting growth through acquisitions
Buyouts of shareholders

What does the process looks like?

01

Initial project evaluation

We begin each project with a meeting with the company and an initial analysis of the project based on basic documentation (e.g. financial statements, management model, business information, etc.).
Then, on the basis of the collected documentation, we prepare a short material describing the company and the purpose of acquiring financing (intro memo), which is then submitted to funds and banks in order to verify the initial interest in the project.
After positive verification, we proceed with project implementation.
02

Preparation of documentation and its analysis by financing institutions

Based on the information gathered and in cooperation with the client, we prepare a material (lender deck) containing a detailed description of the company, its activities, business model, financial situation, as well as the size and purpose of the financing.
We assist the client in preparing a financial model detailing the company’s business segments and business model. The model should include not only historical and current financial information, but also a financial forecast depending on the structure, value and terms of the financing the company is looking for.
We will assist in the preparation of an information package including the above materials and additional documentation.
We organise meetings with interested parties and assist in communication with funding bodies at every process stage.
03

Signing of term-sheet

We assist in evaluating the initial terms of financing received from funds (term-sheet)
We support the client in answering additional questions and, if required, in preparing analyses of selected risks identified by the financing institutions (vendor due diligence)
We assist in negotiating business terms to help you achieve your goals
04

Closing

In the final stage of the process, we also support the legal team in negotiating the business terms of the transaction
We help coordinate client-side activities throughout the process
If required, we are happy to support clients with cyclical reporting even after project execution

Join our clients!

Contact us today to find out how we can help finance your business.

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