HOMEOVERVIEW
- Hibridge Capital sources, structures and arranges funds for secondary debt finance opportunities predominantly in Africa through MCapital its subsidiary operating in South Africa - see presentation.
- We have delivered investors double digit returns with a low correlation to any asset class since 2003 and throughout the economic difficulties since 2007
- All debt investments are asset and/or cash flow backed and secured by a charge over property and personal surety
- Average investment size is approximately £1 million and the average term is eighteen months
- We are acknowledged as having a robust credit culture and work with highly reputable law firms to implement transactions and execute security
- Investment opportunities are sourced through a number of partnerships with debt originators, professional firms and banks. To them we are a long-term creative partner able to structure debt that best matches the various needs of preserving equity, improving cash flow and reducing costs
WHY BORROWERS PAY "MEZZANINE" RATES
- Primary lenders typically lend between 50% and 80% of capital requirement
- The remaining capital must be financed by equity and/or mezzanine debt
- Borrowers generally use mezzanine debt funding for the following reasons:
- equity funding is scarce and more expensive in the long term;
- mezzanine debt increases returns to the borrower;
- mezzanine increases a borrower's capacity to invest in other projects and therefore facilitates a spreading of risk;
- a mezzanine partner provides the borrower with greater flexibility compared to an equity partner
CRITERIA FOR MAKING LOANS
- Borrower
- must be experienced with a demonstrable track record
- verifiable financial statements of project and borrower
- clean credit history
- must contribute equity
- defined exit strategy
- personal guarantee provided by borrower
- Financials/security
- no greater than 75% loan to value exposure
- return on project costs in excess of 35%
- charge over assets and pledge of shares
- personal surety
- restrictive undertakings
- borrower subordination
- Board representation
- Term of loan
- initial fees to cover legal, due diligence and closing costs
- average term 18 months
- generally no prepayment penalty
- interest rolled up
INVESTMENT PROCESS
Hibridge Capital has a structured and disciplined approach to managing exposures and achieving enhanced returns
SELECTED INVESTMENTS
efficient execution of transactions