Endless moves into the lending market
TURNAROUND specialist Endless, which has an operation in Birmingham, is launching its own lending business called Encina.
It will lend to mid-market businesses with turnover above £5m, which Endless says will bridge the gap between the traditional banking and asset-based lending (ABL) markets and the equity markets.
Encina is backed by the partners at Endless and will be led by newly-appointed director Andrew Ward. He established Reward Capital in 2010, recently selling his shareholding, and prior to that was in senior roles at the ABL divisions of Credit Agricole and Five Arrows.
The lender will combine ABL lending and equity investment. Endless says it is free to lend across all assets and sectors and will look to assist with transactional, turnaround and refinancing opportunities. In addition to providing debt, Encina will also look to take equity positions in its clients, providing on-going support to assist management and shareholders.
Encina will target companies with debt requirements of £2m and above, and will work closely with the advisory and intermediary communities. It will look to complete transactions throughout the UK and will initially be based out of Leeds.
Although Encina will principally be a debt provider, it says it will not be competing directly with the main clearing banks and ABL providers, but will look to fill the gaps those institutions do not address.
Encina will be funded via Endless to start with, but the partners at Endless expect the business to have its own independent funding in due course. Encina is a separate legal entity, with a distinct and separate offering from the main Endless business.
Ward said; “We have access to funds and can act quickly, I feel this will be tremendous additional resource for UK companies that are looking to grow or restructure.”
Garry Wilson, managing partner at Endless, said: “The UK has experienced a significant reduction in liquidity in the banking markets in the past four years and there are no signs of this improving.
“I have seen many good opportunities for a debt provider over this time, which were not suitable unfortunately for an equity investor such as Endless, and it is frustrating to know these businesses weren’t being supported.”
