CORPORATE PRESENTATION          for      Accountants     www.ConduitFinance.com
OUR COMPANYConduit Finance was established in 2007 in Edinburgh, we are FinancialServices Advisors serving the whole UK wi...
OUR TEAM                  Jamie Davidson – Managing Partner                  Real Estate / SME & Corporate / Private Banki...
OUR TEAM                  Raymond Foster - Managing Partner of Conduit ABL                  Invoice Discounting / Factorin...
OUR TEAM                  Andy Lawson - Consultant                  Real Estate / Banking / SME & CorporateAndy has over 1...
OUR TEAM                Robert Dick - ConsultantRobert is a CA by training and a member of the Council of The Chartered Ac...
OUR TEAM                  Lisa Pandolfi - Consultant                  Real Estate / Bridging Finance / SME & CorporateLisa...
OUR CLIENTSSince 2007 we have been instructed by a range of different types of clientssuch as Charities, Community Clubs, ...
THE 2013 FUNDING MARKETThe market is definitely improving but when lenders themselves are unsure oftheir criteria it’s ens...
TREASURY / HEDGINGWhen the market was at its busiest the BoEBR peaked at 5.0%, Libor wasusually higher by 0.2%, and margin...
OLD MARKET v NEW MARKETComponent            Old Market              New Market            NotesArrangement Fees     0.50% ...
LENDERS & PRODUCTSOur database has over 2000 active lenders of the following types:International Banks          Peer to pe...
EXAMPLE DEALS OF 2012/13• Property: Mixed portfolio of commercial investments, senior debt and  mezzanine finance, 20yr lo...
Thanks for taking time to read our presentationRaising funds in the market is still tough but it can be done if a case is ...
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Conduit finance Corporate Presentation 2013 - Accountants

  1. 1. CORPORATE PRESENTATION for Accountants www.ConduitFinance.com
  2. 2. OUR COMPANYConduit Finance was established in 2007 in Edinburgh, we are FinancialServices Advisors serving the whole UK with specific focus on: - Property Finance for Investment, Land & Development - SME Funding - Loans, Asset Finance & Invoice Discounting - Restructuring services for clients trapped in GRG, SBS, SRM & BSUOur team has a varied background from Corporate SME Banking toResidential Property Development which ensures we understand thenumerous components of a transaction. - Structuring – Creative technical ability to solve complex problems - Capital stack – We cover Senior debt and Mezzanine Finance - Geography – We have clients across the UK, Offshore and overseas 2
  3. 3. OUR TEAM Jamie Davidson – Managing Partner Real Estate / SME & Corporate / Private BankingJamie founded Conduit Finance in 2007 after a career in FinancialServices in a range of roles: - St James’ Place (pensions, bonds & investments & pension technical) - Prudential (pensions, bonds & endowments) - AEGON (executive pensions, endowments & investments) - Clydesdale Bank (real estate, retail banking & SME lending) - Bank of Scotland (SME, real estate, retail banking projects)Throughout the recession Jamie has sourced new funders andimplemented new structures for lending. This has allowed his clients togrow, survive or restructure their businesses in what is a challenging market.E: Jamie@ConduitFinance.com M: 07919 863 034 3
  4. 4. OUR TEAM Raymond Foster - Managing Partner of Conduit ABL Invoice Discounting / Factoring / Asset financeRaymond has over 25yrs of Invoice Discounting, Factoring and Asset Financingexperience as well as heading up business development and back officebanking teams. He is based in Glasgow and covers the UK.He has previously held business development and senior management roles the following major banks: - Bank of Scotland (Invoice Discounting, Asset Finance and Factoring) - Royal Bank of Scotland (Invoice Discounting, Asset Finance and Factoring) - Bank of Ireland (Heads of Operations for Scotland)His technical expertise allow him to structure business in advance of acceptingfacilities and his market knowledge insures that his clients receive the mostcompetitive finance possibleE: Raymond@ConduitFinance.com M: 07515 332 770 4
  5. 5. OUR TEAM Andy Lawson - Consultant Real Estate / Banking / SME & CorporateAndy has over 13 years of banking experience in both the UK and Australia.His knowledge of Commercial and Corporate Debt comes from his time withthe following major banks: - Bank of Western Australia (new business sales in personal banking) - Bank of Scotland (corporate real estate , SME senior debt lending) - Bank of Ireland (UK-wide focus on property investment & development)Andy has a thorough understanding of the lenders credit policy, risk profile andtheir financial modeling requirements so when new proposals are submittedthey are quickly assessed and progressed.E: Andy.Lawson@ConduitFinance.com M: 07929 612 502 5
  6. 6. OUR TEAM Robert Dick - ConsultantRobert is a CA by training and a member of the Council of The Chartered Accountantsof Scotland, with nearly 20yrs in senior management and UK-wide businessdevelopment: - CALA Group, 10yrs as Group Finance Director & 8 as Chairman Business (internal) - Lead CALA team completing their Public to Private MBO in 1999 - Scottish Finance Director of the Year 2000Robert also act in various non-executive capacities: - Richmond Homes Scotland, Non-Executive Chairman - Advisory Group for Inspiring Scotland (Charity), Chairman 6Robert acts as a Non-Executive advisor to Conduit Finance LLP.
  7. 7. OUR TEAM Lisa Pandolfi - Consultant Real Estate / Bridging Finance / SME & CorporateLisa joined Conduit Finance in early 2011 in a role that focuses on handling newbusiness for loans below £500,000 and the operational side of our business.She has a background in financial services and property and supports clientsseeking loans from a range of source including retail banks and bridging lenders. - Business development for an Edinburgh based property and investment firm - Para planner for a firm of IFAs handling ethical investment opportunities - She has a Masters Degrees from St. Andrews, a degree from the University of London and also passed her FPC 1Lisa’s attention to detail and professional manner is appreciated by ourclients and lenders alike which ensures small problems are resolved andapplications are progressed quicklyE: Lisa.Pandolfi@ConduitFinance.com T: 0131 473 2374
  8. 8. OUR CLIENTSSince 2007 we have been instructed by a range of different types of clientssuch as Charities, Community Clubs, Renewables Developers, PLC’s, AIMlisted companies, Investment Funds, Trusts, Property Syndicates, Sole Tradersand Family Estates. - SME: Manchester, Commercial Mortgage, 30yr loan - Property: Dundee, portfolio of Commercial Property, non-recourse - SME: Glasgow. Manufacturing, Overdraft, Asset Finance - Property: Edinburgh, Spec Resi Property Development, 70% LTC - SME: Brighton, serviced apartments, 75% LTV, restructuring - Property: London, Investment Fund, non-recourse - SME: Norwich, Hotel, HMA, overdraft to loan, 2.75% marginWe work with family scale business though to larger corporates who have anin-house FD but require specialist fund raising support.Most recently we have been introduced to new clients by banks looking todivest from certain parts of the market. 8
  9. 9. THE 2013 FUNDING MARKETThe market is definitely improving but when lenders themselves are unsure oftheir criteria it’s ensuring that you have multiple options that will deliver success. - Competition: Lenders are starting to compete so margin are improving - Lender type Retail banks still important but new lenders are valuable - Re-financing: £150bn of UK lending needs to be re-financed in 2013/14/15 - Regulatory: Basel II & III taking grip of EU liquidity and wholesale markets - Divestment: Retails banks continue to force borrowers out the door - FFL & LTRO: ECB & BoE initiatives starting to have traction at ground level - Cash Flow: An encouragingly competitive market for Asset Based Lending 9
  10. 10. TREASURY / HEDGINGWhen the market was at its busiest the BoEBR peaked at 5.0%, Libor wasusually higher by 0.2%, and margins ranged from 0.8% through to 2.0%. Fixedrate products cost more and were locked in on terms from 2 to 20 years andsometimes longer depending on the risk.We are nearing a period where a lot of the fixed rates agreed at the peak of themarket are due to expire which is good news for borrowers but less beneficial forlenders.The miss-selling of interest rate swaps has had a significant impact with themajority of lenders now having subscribed to an FSA driven initiative to supportborrowers.As opposed to 2005/06 now really is the time to fix or hedge term lending:As an example one of the retail banks can provide low margins on SME debtlending, therefore after adding 3yr fixed cost of funds would be 3.7% (circa 1.2%for cost of funds and 2.5% margin). 10
  11. 11. OLD MARKET v NEW MARKETComponent Old Market New Market NotesArrangement Fees 0.50% to 1.50% 0.50% to 2.00% UpMargin 0.30% to 2.00% 1.50% to 4.00% UpCost of funds 5.00% to 5.30% 0.50% to 0.60% DownLTVs Max of 85% Max of 80% DownTerm Max of 15 Years Max of 25 years DownDSCR 110% - 7% - 25yr 110% - 8% - 15yr UpSecurity 1st charge, B+F & PG First charge & B+F PGs not favouredDebt servicing calculations n the current market are driving down loan amounts. Asfor example retail banks will stress test loans based on a rate of 8% with cover of110% on a short loan profile of 15yrs.To compound calculations further lenders will also sensitise profits for SME’s andrental income for property investment by as much as 20%. 11
  12. 12. LENDERS & PRODUCTSOur database has over 2000 active lenders of the following types:International Banks Peer to peer Building SocietiesRetails Banks Non-retail Bank Bridging FinancePrivate Banks Mezzanine Funds Joint Venture FundersOffshore Banks Local Lenders Private InvestorsProducts and Purposes:Cashflow finance for MBO / MBI Land banking Personal mortgages100% funding for sitting tenants Property investment International propertyOverdrafts for working capital Development Private BankingCommercial Mortgages Bridging Car FinanceAsset and Invoice Finance Rolling credit facilities Offshore lending 12
  13. 13. EXAMPLE DEALS OF 2012/13• Property: Mixed portfolio of commercial investments, senior debt and mezzanine finance, 20yr loan, 5yr interest only & blended rate of 6%.• SME: Serviced offices, bridge finance to facilitate a hair cut by an incumbent bank, loan completed in 14days and term loan thereafter• Property: Single asset, single tenant office building of 35sqft, refinanced from distressed lender at £1.8m bellow original loan amount• SME: Family restaurant, interfamily asset transfer, 90% purchase price, 25yr loan, cash back via loan guarantee schemeOur objective at all times when raising finance is to approach less obvioussources who may offer something unique for our clients. 13
  14. 14. Thanks for taking time to read our presentationRaising funds in the market is still tough but it can be done if a case is thoroughly assessed and well presented to the right funder.Please contact me or one of the team to discuss how we can quickly secure competitive finance quickly for your clients. Jamie@ConduitFinance.com T: 0131 473 2374 M: 07919 863 034 Hudson House, 8 Albany Street, Edinburgh, EH1 3QB

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