Endless launches lending arm
ENDLESS is launching a new lending operation targeting mid-market businesses to be led by Andrew Ward.
Encina will focus on helping companies with turnover above £5m and debt requirements of more than £2m by offering them asset-based lending facilities and taking minority equity stakes.
Mr Ward has agreed to lead Encina just weeks after selling his shareholding in Reward Capital, the business he launched in 2010.
Endless has said that it will initially back Encina although the partners expect it to eventually move to independent funding.
Mr Ward told TheBusinessDesk.com: “We are looking to provide funding to companies that can’t access all their requirements from the mainstream but aren’t a traditional equity-type investment.
“In terms of the deal size of more than £2m, we have talked about putting £25m into the market in the first year but there is no cap.
“The product is based around asset-based lending and we will lend against all assets, whether that’s a combination or a single asset.
“Banks and asset-based lenders have internal rules on sectors and ratios to keep within. We won’t have those rules, we will look at each case individually.”
Endless has been considering developing an interest in this area for more than a year and moved to put its plans into action when Mr Ward announced his departure from Reward Capital.
Before launching Reward, Mr Ward held senior roles at the ABL divisions of Credit Agricole and Five Arrows.
Endless partner Darren Forshaw said: “Endless sees about 500 opportunities a year and a lot of those look very interesting and potentially rewarding debt-led transactions.
“We were frustrated that we would try and move those opportunities to others and see that they wouldn’t be done so we thought it would be interesting to create a specific business to do that.
“We have identified a gap in the market and hopefully Encina is there to fill it in the same way Endless was launched to meet the dearth of turnaround funding.
“I think this will be the first of several new business opportunies that you will see us get involved with.”
