Asset Based Lending

Our asset based lending course trainer is an ABL consultant, public speaker and author with expertise in private equity, debt advisory, restructuring and infrastructure. He is a Senior Advisor to KPMG Finland, a Senior Advisor to Reorg EMEA Covenants, the leading provider of information to the European High Yield community, and a Senior Consultant to Grant Thornton UK.

Training programmes are provided to a wide range of blue-chip clients in Europe, Africa, the Middle and Far East, North America and Australasia. In-house clients include banks (BNP Paribas, Société Générale, ING, Barclays Capital, Bank of China, RBS, SEB); personal asset based lending lawyers (Baker & McKenzie, Skadden Arps, Sullivan & Cromwell, Cadwalader, Latham & Watkins, Weil, White & Case); advisory firms (Lazard, PWC, M&A International, KPMG, EY, Deloitte); PE firms (Cinven, Advent, Barings Asia, Waterland); corporates (Siemens, Airbus, Turkcell, Candy Crush, Gunvor, Statkraft) and governmental bodies (the UKLA, the EBRD, the ECGD, Omani Oil Corp.)

He qualified in South Africa both as a Chartered Accountant, with Deloitte and as an ABL lawyer with Hofmeyr where he was involved in structuring several high-profile project financings including BMW 3 Series, Ford Sierra, GM, Sappi and Mondi.

When he moved to London and joined Lazard Brothers as a corporate finance executive he was involved in a wide range of public and private transactions. Subsequently, he joined Hoare Govett as an assistant director where he acted as an advisor to smaller listed companies and was involved in several syndicated Euro-Equity Initial Public Offerings.

In 1991 he joined ABN Amro’s cross-border M&A team before being transferred to MeesPierson Corporate Finance as a Director in Cross-Border M&A where he was also involved in several deals in Central Europe. During this time he was a member of the EU-PHARE programme and advised the Estonian government on its privatisation programme.

In 1991 he joined ABN Amro’s cross-border M&A team before being transferred to MeesPierson Corporate Finance as a Director in Cross-Border M&A where he was also involved in many deals in Central Europe. During this time, he was a member of the EU-PHARE programme and advised the Estonian government on its privatisation programme.

He is the Programme Director at the City Business School, London, for Infrastructure Finance for the M. Sc. programme in Business Administration and Finance.

He is a member of the Institute of Chartered Accountants in England & Wales and the South African Institute of Chartered Accountants. He completed a BA and an LLB at the University of Natal and a B. Compt. (Hons) at UNISA.

• Gain an appreciation of asset-based lending (“ABL”) in tandem with other funding sources
• Understand when Asset Based Lending (ABL) is and is not suitable, as well as the choice of funding
• Be taught about the key inter-creditor issues applicable to ABL
• Have explained the financing accounts receivable (“AR”) in ABL
• Learn about the key relevant issues in revolving inventory and plant, machinery and equipment
• Learn about the relevance of ABL to real estate, including a comparison with specialist lending
• Our ABL training will also include an overview of a typical term sheet and commentary thereon.

• Our ABL course trainer is a senior asset based lending Consultant to Grant Thornton in Debt Advisory. He is actively engaged in advising on deals involving ABL and other debt products.
• He recently advised two major asset based lending banks on structuring inter-creditor arrangements concerning ABL and term debt (a hot topic in Europe).
• Our ABL training has been presented to various organizations (e.g. Banks, Debt and PE Funds and Advisors) which gives our trainer insight into the challenges facing players in the Asset Based Lending (ABL) market.
• His career also includes stints in commercial asset based lending and investment banking, accountancy, tax and law providing insight from a wide range of perspectives

The programme is aimed at professionals involved in deals involving ABL; specifically Lenders providing ABL or in loans where ABL is present, Lawyers advising lenders or borrowers on ABL, Private Equity professionals who may use, Corporate financiers, M&A advisors, Debt advisory and Restructuring professionals.

Background

• Competitive pricing vs traditional working capital facilities typically provided by RCFs from banks which have become more expensive as interest rates have escalated has boosted interest from borrowers. Commitment fees on ABL are also much lower
• Increasing acceptance as a funding option, especially by PE sponsors. ABL lenders have worked hard to offer greater flexibility to borrowers e.g. by providing committed facilities and a higher proportion cash flow strips as part of their funding package
• Sector specialisation in ABL providers. The rise in specialist ABL providers with deep knowledge of specific industries has allowed these lenders to provide tailored funding solutions to meet borrower’s needs
• The challenging economic climate caused by Covid, geopolitical events, dislocation in energy markets has boosted risk aversion in traditional lending. ABL, with its focus on asset values which endure post distress, offers lenders a lower level of risk and higher recoveries post default
• Technological developments have made ABL more efficient and data driven. ABL Lenders are increasingly using software to streamline asset valuation, monitoring which have improved decision-making and reduced risk

Challenges in ABL

• Despite these benefits ABL lending has a greater complexity in bifurcated deals especially in structuring the intercreditor issues between ABL and traditional cash flow based lenders
• ABL relies on collateral - primarily on the value of their on collateral so lenders are keen to ensure they have full control over their assets pre and post distress and the fact that it
• Lengthy Initial setup takes longer as ABL lenders need to audit the paper trail and appraise the asset values