End of Financial Year 2021 and Company Update
Sydney | Thursday, July 15, 2021
2020 – A Reflection
The year 2020 and the first half of FY2021 was a period of sustained management and portfolio focus for FC Capital. The firm managed its credit book closely through the peak of COVID from March to June 2020 and continued to fund our existing sponsors who sustained their performance throughout the year. I am pleased to note only 1 sponsor (who has now fully repaid their facilities) required short-term assistance following which it benefited from a V-shaped recovery,
FC Capital’s loan book was stable and performed in line with expectations highlighting the rigorous portfolio construction and investment and due diligence process the firm has developed and continuously refines.
FY2021 – Highlights
We have commenced 2021 with a renewed focus on underwriting and deployment, following our careful portfolio management strategy of 2020. The team’s focus has been to return to growing the private debt book: reinvigorating the pipeline from existing portfolio management in calendar 2020; to $120m worth of opportunities as of the end of January; and a pipeline of over $300m across 26 opportunities as of 30 June 2021 with an average transactions size of $11.7m.
We have settled more than $30m of new deals across 4 transactions (excluding loan advances to existing sponsors) and have $24m of live transaction across 3 deals as of 30 June 2021. Since January 2021, the FC Capital team has reviewed and subsequently rejected $528.4m of lending opportunities across 41 transactions.
The firm realised $22.9m of credit investments across 5 transactions. The realised investments delivered a combined gross IRR of 14.99% excluding any due diligence and advisory fees charged by FC Capital.
CY2020 – Investment Target
The FC Capital team is targeting a total deployment of $100m into new credit investments in Australia and New Zealand.
New Funding Products
I am pleased to announce the addition of two new products to our alternative investment strategy in FY2022. Starting in July 2021 FCCapital is offering the following funding solutions to Australian and New Zealand borrowers in addition to its existing private debt and structured credit solutions:
- Invoice Discounting (Disclosed and Undisclosed)
- Medical and Pharmacy Funding Program (Pharmacies, medical equipment and medical)
We welcome direct borrower enquiries and approaches from brokers and advisors. Please contact any of the following FC Capital team members.
|Christian Brehm||Damian Speziali||Patrick William|
|+61 418 453 915||+61 413 226 624||+61 430 435 580|
For more information about our funding solutions visit https://www.fccapital.com.au/what-we-do/.