Alpha Group International plc (LON:ALPH) today announced that it has partnered with law firms, Fladgate LLP and Osborne Clarke LLP, alongside a pool of lenders, to create an âoff-the-shelfâ fund financing solution for GP commitments.
Over the past 12 months, we have received a surge of requests from managers seeking GP financing, particularly from the lower and mid-markets. This has partly been driven by the slowdown in exits, leaving GPs with fewer proceeds to fund their GP commitments.
The upswell in demand isnât helped by many banksâ lack of interest in providing these loans. Due to their bespoke nature, GP facilities are small, complex and time-consuming to structure, meaning they are typically the preserve of the bankâs favoured relationship.
Having received such high demand for affordable and efficient GP financing, we have developed a solution alongside two leading law firms, Fladgate and Osborne Clarke, and a selection of fund finance lenders. Alphaâs GP Financing Solution is designed to provide managers with access to these loans quickly and cost-effectively.
Roisin Marsh, Partner at Osborne Clarke, said, âWe are thrilled to have collaborated closely with Alpha to conceive and launch this new initiative, addressing a clear market need. Together with Fladgate, we have developed a streamlined legal framework that empowers us to deliver fast, cost-effective transactions, all while maintaining the highest standards of quality and compliance.
Ed Fuller, Partner at Fladgate, said, âStandardising the process (where possible) with a trusted mini ecosystem of lenders, means that we can provide an âoff-the-shelfâ service to GPs which saves time, cost, and overcomes many of the barriers to accessing GP financing.â
The Alpha GP Financing Solution
- Standardised process: Lender and borrower side counsel embedded with product
- Lenders: Pool of partners with capacity and appetite
- Quick and easy: Facilities in place within eight weeks.
Alpha is an award-winning FTSE 250 financial services company, listed on the London Stock Exchange. Its Private Markets division provides a powerful alternative to traditional banking â one that is designed specifically to handle the complexity of private market companies. Today Alpha supports approx. 2,000 investment managers across the world, alongside some of the industryâs most respected service providers.
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