Novicap – the European fintech offering end-to-end working capital options – is at present asserting it has raised a €200 million debt facility from London-based asset supervisor, Fasanara Capital.
It comes at a time when Novicap’s proprietary know-how platform has exceeded the €1 billion milestone in transaction quantity as of Q3 2022, and follows the agency being listed as one of many 1,000 fastest-growing European firms, based on the Monetary Instances and Statista, for the third 12 months in a row.
Novicap expands funding capability to >€1 billion annual credit score volumes
In at present’s surroundings, mired by the prospect of rising charges and inflation, working capital financing is a strong different for fixed-income traders, as its portfolio diversification and brief period present a pure hedge towards such macroeconomic developments.
Beforehand troublesome to entry for traders due to heavy operational necessities, working capital financing as an asset class is at present simpler to achieve because of technology-enabled actors like Novicap which offer origination, underwriting and servicing capabilities digitally.
The brand new funding settlement with Fasanara implies an extra capability of over €1 billion of financing quantity per 12 months for Novicap. It additionally reinforces Novicap’s message to its goal buyer segments that whereas the normal banking sector could also be tightening credit score availability in at present’s market surroundings, Novicap’s technology-enabled credit score options are a dependable different.
One other milestone in Novicap and Fasanara’s long-standing relationship
Fasanara – which counts the European Funding Fund amongst its institutional traders – started buying receivables by way of Novicap in 2017. Over the previous 5 years, Fasanara has progressively elevated its participation to develop into considered one of Novicap’s main credit score funders.
This newest €200 million funding settlement marks the newest milestone on this long-standing relationship.
Lois Duhourcau, CEO of Novicap, mentioned: “Constructing on the connection developed over a few years, this new funding settlement is a significant step within the scale up of our credit score options. Fasanara Capital is a pioneer in our asset class, and relying on their assist in at present’s markets is a useful asset. Along with the assets we’ve got been including to our SaaS options, this locations us in an excellent place to assist SMEs, mid-market corporates and public administrations handle their working capital.”
Federico Travella, Founder & Government Chairman of Novicap, mentioned: “This new funding is a testomony not solely to Novicap’s efficiency and its inherent ESG focus, but additionally Fasanara’s potential to scout younger, progressive fintechs, and supply them with the capital essential to grow to be scalable operations,”
Francesco Filia, CEO of Fasanara Capital, mentioned: “Since we began investing by way of Novicap’s credit score options, we’ve got been impressed by the know-how they’ve constructed. It allows Novicap to handle part of the market that’s underserved by banks, thereby having a direct affect on the actual economic system. We’re thrilled to have witnessed their evolution from the early days to at present’s funding settlement, by which we’ll assist them and their clients within the subsequent part of development.”