ACP Capital's Strategic Platforms are vehicles focused primarily on the provision of a series of financing products to the SME sector, in which ACP Capital may take significant minority equity stakes.
ACP Capital believes that it could, as a preferred funder, provide competitive financing to enable these Strategic Platforms to expand their various loan products into areas such as senior and subordinated corporate loans (secured and unsecured), off balance sheet financing (i.e. sale-leasebacks), and equipment financing including IT hardware, telecommunications and vehicles. Through this product range expansion, ACP Capital in turn would benefit from an ongoing source of funding origination that would provide a flow of opportunities.
ACP Capital has identified and entered into advanced discussions with a series of targets in the key markets of the UK , France , Italy and Germany . Examples of these potential SME-focused finance businesses are as follows:
Germany
ACP Capital intends to create a German financing platform involving either the potential purchase of a significant stake in a small German bank with a license to issue Pfandbrief, or alternatively, ACP Capital acquiring its own German banking license. ACP Capital also intends to provide funding lines for identified loan products to independent German SME loan originators.
This process is already underway with the recently announced acquisition by ACP Capital of 2,401,805 newly issued shares of the German Private equity company GCI Management AG (GCI), through which GCI will become ACP Capital's key strategic partner for its merchant bank strategy in Germany. ACP Capital aims to provide a series of financing products to GCI's existing and future investment portfolio that would enable GCI to expand its product ranges in areas such as senior debt and senior and junior mezzanine.
This relationship with GCI will generate a range of new investment opportunities. As a result of a potential co-investment agreement, ACP Capital will be granted rights to co-invest in the equity of GCI transactions on the same terms as GCI. ACP Capital will be the preferred debt funding partner for GCI transactions, resulting in potential opportunities for senior debt underwriting and mezzanine lending opportunities for ACP Mezzanine.
France
ACP Capital has submitted an offer letter for a significant minority stake in a French SME financing business, with an estimated equity investment of approximately €40 million to develop the target.
This strategy is underway, for which an announcement will follow shortly.
Italy
As part of the strategy to create an Italian SME-focused finance business, ACP Capital has entered into advanced discussions to create a joint venture with the established Italian investment house, Eurinvest, with whom ACP Capital would look to take an equity stake in Finleasing Lombarda S.p.A.
UK
ACP Capital intends to create a UK SME-focused finance platform with a view to taking a minority equity stake and/or providing a series of financing facilities. ACP Capital is presently in discussions with a number of parties for this purpose.