Fost

🔎 Les actifs adossés aux infrastructures digitales de plus en plus prisés même en dehors des États-Unis. A titre d'exemple, Vantage Data Centers vient de réaliser la première titrisation d'actifs de data centers en Europe, au Moyen-Orient et en Afrique, démontrant l'essor de ces infrastructures dans le monde. Cette croissance est alimentée par l'IA, la connectivité Internet croissante et le télétravail généralisé. Cette expansion du secteur s'accompagne également de nouveaux types d'actifs, tels que les microprocesseurs et les unités de traitement graphique, qui sont liés à des dettes garanties et pourraient à l'avenir servir de base à des ABS. Le financement dans ce domaine est en constante évolution, avec des transactions notables comme la levée de fonds de 7,5 milliards de dollars de CoreWeave Inc., mêlant financement investment grade et tranches non garanties. #IA #DataCenter #InfrastructuresDigitales https://lnkd.in/evJT3PDT

💡 Asset-Based lending market is booming Direct lenders and their investors are abuzz with asset-based financing, a burgeoning trend in private credit. At conferences and private meetings, fund managers are eagerly discussing loans backed by real assets, such as equipment and inventory. Unlike corporate debt, these loans are thought to be better shielded from the vagaries of the economy because lenders rely on the value of the assets rather than the borrower's financial condition, fund managers say. This excitement translates to real growth: The asset-based lending (ABL) market size is projected to grow from $697.75 billion in 2023 to $787.28 billion in 2024, at a compound annual growth rate (CAGR) of 12.8%. ➡ Why is ABL thriving? Here are some key drivers: 1️⃣ Need for alternative financing: Businesses are increasingly seeking alternatives to traditional loans. ABL offers greater flexibility, potentially lower costs, and faster approvals, making it an attractive option. 2️⃣ Global Economic Volatility: Uncertainty breeds opportunity for ABL. In uncertain times, businesses need creative ways to manage working capital and secure funding. ABL can provide that lifeline. 3️⃣ Focus on working capital optimization: Businesses are laser-focused on optimizing working capital. ABL unlocks the value of assets like inventory and receivables, freeing up cash flow for growth. The demand for alternative financing is real. Millions of Americans already use them, according to Pew Research. https://lnkd.in/d5ScwbGu

💡 Private credit lenders can play an increased role in asset-based financing (ABF) BlackRock sees an opportunity for private credit lenders to play a bigger role in asset-based financing (ABF). This comes as banks are lending less and becoming more selective. ABF is a broad financing category that includes loans based on various assets like consumer debt, equipment, and intellectual property. The US ABF market is estimated at $5.5 trillion, with a third currently financed by non-bank lenders. Private credit's share is estimated at $200-$300 billion. BlackRock sees a trend of banks selling loan exposures or partnering with non-bank lenders to participate in ABF. This growth is driven by stricter bank lending regulations and varying reliance on banks across regions. Additionally, US insurers are showing increased interest in ABF investments. https://lnkd.in/eECb--db

💡 "You can issue debt "against" almost anything" Esoteric ABS deals — backed by collateral other than student, auto, credit card and equipment loans — have risen to about 31% of the ABS market from 9% over the last decade, according to Barclays Plc : https://lnkd.in/e-v46XeV

Data Centers: Beyond Infrastructure Financing Data centers are evolving from purely infrastructure plays to dynamic businesses. This opens new financing opportunities beyond traditional infrastructure solutions. Trade receivables financing presents a compelling option for European data center providers. By reevaluating their trade receivables, these companies can unlock hidden value within their existing business model https://lnkd.in/eSb8fhQJ

💡 Debt financing emerges as a powerful tool for climatetech startups Climatetech companies are increasingly turning to debt financing alongside venture capital (VC) to fund their projects. This trend goes beyond large corporations like Enpal and Northvolt, and presents a valuable opportunity for startups as well. Here's why debt financing matters for climatetech startups: ➡ Beyond software: Many climatetech solutions involve physical components or hardware. Factoring in debt early helps secure the necessary capital for these aspects. ➡ Specialized skillset needed: Understanding debt structures, covenants, and project presentations requires a different skillset than attracting VCs. Startups considering debt financing may need to adjust their team accordingly. ➡ Hybrid models are key: Combining VC funding with debt or asset-backed securities allows for faster scaling, especially crucial in the rapidly evolving decarbonization space. ➡ Creative business structures: Companies have demonstrated the potential for separate entities within a startup, attracting investors for specific project aspects. ❓ Is there an optimal time for startups to consider their future financing needs? ❓ Will hybrid VC-debt models become commonplace in climatetech? ❓ Which areas of climatetech are best suited for these structures? At Fost, we are happy to discuss with climatech companies on their debt funding challenges ! https://lnkd.in/eRqTxW6m

💡 Gestion d'une ligne de dette : un processus continu Un excellent article d'Andreessen Horowitz qui décrit les challenges de la phase opérationnelle qui suit une levée de fonds en dette. L'article cite de nombreux outils et logiciels qui ont modernisé des processus manuels liés à la gestion de la dette aux Etats-Unis. Bientôt en Europe ? https://lnkd.in/dtbTr6Fv

💡 Unlocking New Frontiers in Private Debt: The Rise of Asset-Backed Finance In the realm of private debt, asset-backed financing (ABF) is emerging as a promising avenue for diversification and attractive returns. UBP - Union Bancaire Privée, a leading player in the industry, highlights the potential of ABF in their recent white paper, urging investors to explore this exciting frontier. Why Asset-Backed Financing ? ➡ Diversification beyond traditional direct lending: There is a need to move beyond the saturated direct lending market. ➡ Secured exposure: ABF offers secured exposure to a diversified pool of borrowers, mitigating risk and enhancing stability. ➡ Attractive repayment profiles: ABF typically features attractive repayment profiles, providing steady income streams for investors. ➡ Gaining market share from banks: Alternative lenders have the opportunity to capture market share from banks in the ABF space. 📍 The Challenge: Origination Expertise - It is all about deal flow ! While ABF presents significant opportunities, it also demands robust origination capabilities. Building these capabilities requires time, expertise, and a deep understanding of the asset class. #privatedebt #investing #diversification #assetbasedlending #ABL https://lnkd.in/efiQA2WR

We are extremely excited to be partnering with Mimo in helping financing SMBs with an asset-based credit facility. We have been impressed by the sophistication and complementary of the seasoned founders team and their CFO Aishwarya. Well done Henrik 👏🏼👏🏼 More information on Fost on www.fostcap.com. Hadrien Mansour / Valentine Baudouin / Mehdi Ousahla 🚀🚀🚀🚀

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