Union Bancaire Privée has signed an exclusive partnership with fintech-driven alternative credit investment manager Fasanara Capital and launched the Trade and Receivable Finance Fund, a real-economy impact investment solution.
The fund aims to deliver absolute returns with very low volatility and correlation to markets in an open-ended, income-distributing alternative fund format. It seeks to achieve its objective by investing primarily in short-term, investment-grade, corporate trade receivables and digital invoices bought from SMEs from around the globe with a core emphasis on Europe.
Fasanara is a London-based institutional asset manager, a leading player in the European market of fintech-originated receivables with one of the longest transactional track records in the sector. The company has over €1.4bn in assets under management, mainly in the alternative credit and European digital factoring space. Fasanara has an extensive, global origination network, allowing access to high-grade, proprietary deal flow. Its unique approach combining data science and alternative lending expertise provides exposure to investment-grade credit risk at SME-type yields.
Fasanara Capital is in an ideal position to navigate the current turbulence."
Nicolas Faller, co-CEO for asset management at UBP, declared: "We are proud to have partnered with Fasanara Capital and to offer our institutional clients access to a strategy with a direct impact on the real economy, in particular on European SMEs, and supported by prestigious institutions like the European Investment Fund."
"Thanks to its unique short-duration investment strategy, exposure to investment-grade counterparties, expertise in fintech, powerful proprietary technology and PRI signatory, Fasanara Capital is in an ideal position to navigate the current turbulence."
Francesco Filia, CEO at Fasanara Capital, added: "Trade and receivable finance, also known as factoring, is one of the key pillars of European commercial finance, with near €2trn in financing volume or 11% of EU GDP. As commercial banks withdraw to focus primarily on large corporates, alternative sources of stable funding are badly needed by European SMEs.
Institutional investors have both the need and the opportunity to diversify away from public bonds and equities, and fill the gap. We are honoured to have joined forces with UBP to help institutional investors channel funds efficiently into the real economy, and have an impact.