Pemberton Announces it has Raised $1 Billion for its Working Capital Finance Strategy

Pemberton, a leading alternative credit specialist, has raised US$1bn for its Working Capital Finance (WCF) strategy.

The WCF strategy invests in receivables, payables, and inventory financings for large and mid-market companies in both the US and in Europe through an open-ended fund structure. The companies Pemberton invests in span a wide range of sectors, with a focus on IT and food businesses.

Pemberton believes it is one of the first asset managers in the world to offer a short-term alternative credit strategy to institutional investors. It believes the strategy offers a stable NAV and strong returns compared to traditional fixed-income assets.

Pemberton’s dedicated WCF investment team comprises 10 senior professionals, including six Managing Directors, who are responsible for sourcing, structuring, and underwriting the assets for the strategy.

Recent hires include Oren Bass as Head of Origination. Oren is responsible for sourcing WCF assets for the strategy globally and brings more than 20 years’ of experience in alternative lending and private debt. Prior to joining Pemberton, Oren was CEO of FIBR Bank (previously Amsterdam Trade Bank) where he was responsible for transforming the bank into a pan-European digital lender focused on SMEs. He also founded pioneering digital lender Pave, which he scaled across the United States, and previously worked at GLG Partners and Goldman Sachs.

Demand for working capital financing has grown strongly, with working capital used by corporates rising 17% from €4.6tn in 2020 to €5.4tn in 20211, and the market for financing is forecast to continue growing over the coming years2 . Banks remain the dominant players in the market, but Pemberton believes institutional capital has an increasingly important role to play in several segments of the market that are underserved by the banking community.

The WCF strategy is zero duration and very low volatility, having been zero default and zero loss since inception.3

Mark Hickey, Head of Working Capital Finance, said: “This milestone demonstrates growing LP interest in working capital finance and its ability to offer compelling returns in volatile market conditions.

“We believe non-bank capital will play an increasingly important role in short-term corporate financing and that the investments we have made in our team and our proprietary technology platform will enable us to grow the strategy to over $10bn AuM over the next five years.”

Symon Drake-Brockman, Managing Partner, said: “Our Working Capital Finance strategy extends Pemberton’s range of investment strategies to include short-term corporate credit. It leverages our core strengths as a fundamental credit manager, whilst providing our LPs with another complement to our established direct lending strategies.”

Notes to Editors:

1 Working capital used by the largest 18,000 global corporations rose 17% from €4.6tn in 2020 to €5.4tn in 2021.

Source: Page 5, Working Capital Study 22/23, PwC - https://www.pwc.co.uk/business-restructuring/pdf/working-capital-report-2022.pdf

2 Supply chain financing and other open account financing are forecast to increase at 6.2%-8.6% pa from 2022 to 2031.

Source: Page 13, ICC Trade Register 2022, ICC/BCG

3 Past performance is not a reliable indicator of future results.

All information is correct at 9 February 2023 unless otherwise noted.

For further details, contact:

In the UK

Carl Leijonhufvud, cleijonhufvud@headlandconsultancy.com , +44 (0)79 0185 3494

Max Kelly, mkelly@headlandconsultancy.com, +44 (0)75 9012 0533

In the US

Candace Carpenter, ckcarpenter@contextcontentllc.com, +1 817 773 2314

About Pemberton Asset Management

Pemberton Asset Management (‘Pemberton’) is a leading alternative credit specialist. We offer an innovative range of strategies for investors and borrowers built on more than a decade of experience developing market-leading credit solutions. We provide rigorous credit analysis through a substantial and independent credit function and have a local presence in all of our key markets. Our investments are conducted with a deep focus on sustainability by embedding ESG criteria into our investment processes and monitoring the ESG credentials of our borrowers. We are relentless in creating new opportunities and building open and transparent relationships, bringing clarity to complex credit markets for investors, borrowers and banks.

Disclaimer

This document is about the Pemberton Payables and Receivables Opportunity Strategy and is intended only for the person to whom it has been delivered. This document is solely for discussion / information purposes only and does not constitute an offer or a firm commitment of any kind to provide any investment opportunity, fund structure or return. It should only be used for evaluation of any facts presented herein.

Investment in instruments that the strategy may reference are likely to be long-term and of an illiquid nature. Such instruments are also likely to involve an above average level of risk. This document does not purport to identify all of the risk factors associated with any exposure to such a strategy and prospective investors should make their own assessment of any risk involved in seeking exposure to the strategy or instruments referenced therein. There is no guarantee of trading performance and past or projected performance of the strategy or instruments referenced is no indication of current or future performance / results. The value of investments may fall as well as rise.

Exposure to the strategy is suitable only for sophisticated investors and requires the financial ability and willingness to accept for an indefinite period of time the risks and lack of liquidity inherent in the strategy or instruments referenced therein.

Any third-party information (including any statements of opinion and/or belief) contained herein is provided by Pemberton Asset Management group of companies, being. Pemberton Asset Management S.A., Pemberton Capital Advisors LLP and any other affiliates (“we”, “our” or “us”) and has not been independently verified.

Statements of opinion, market or performance information and any forecasts or estimates contained in this document are prepared on the basis of assumptions and conclusions reached and are believed to be reasonable by us at the time.

No representation, warranty, assurance or undertaking (express or implied) is given (and can therefore not be relied upon as such), and no responsibility or liability is or will be accepted by us or any of our affiliates or our respective officers, employees or agents as to the adequacy, accuracy, completeness or reasonableness of the information, statements and opinions expressed in this document.  Any opinions expressed in this document do not constitute legal, tax or investment advice and can therefore not be relied upon as such. Please consult your own legal or tax advisor concerning such matters.

The information contained in this document (which does not purport to be comprehensive) is believed to be accurate only at the date of this document and does not imply that the information herein is correct at any time subsequent to the date hereof and such information is subject to change at any time without notice. The views expressed herein are subject to change based on market and other conditions and we give no undertaking to update the information, to reflect actual events, circumstances or changes in expectations or to provide additional information after its distribution, even in the event that the information becomes materially inaccurate.

The recipient acknowledges and agrees that no person has, nor is held out as having, any authority to give any statement, warranty, representation, assurance or undertaking on our behalf in connection with any potential investment.  No part of this document may be reproduced in any manner without our written permission.

This document has been prepared and issued for use in the UK and all countries outside of the European Union by Pemberton Capital Advisors LLP.  Pemberton Capital Advisors LLP is authorised and regulated by the Financial Conduct Authority (“FCA”) and entered on the FCA Register with the firm reference number 561640 and is registered in England and Wales at 52 Grosvenor Gardens, London, SW1W 0AU, United Kingdom. Registered with the US. Securities and Exchange Commission as an investment adviser under the U.S. Investment Advisers Act of 1940 with CRD No. 282621 and SEC File No. 801-107757. Tel: +44(0) 207 993 9300. 

This document has been prepared and issued for use in the European Union by Pemberton Asset Management S.A..  Pemberton Asset Management S.A. is authorised and regulated by the Commission de Surveillance du Secteur Financier (“CSSF”) and entered on the CSSF Register with the firm reference numbers A1013 & A1342 and is registered in Grand Duchy of Luxembourg at 31-33, avenue Pasteur, L-2311. Pemberton reports to the US. Securities and Exchange Commission as a reporting exempt investment adviser under the U.S. Investment Advisers Act of 1940 with CRD  282865 and SEC File No. 802-107832. Tel: +352 26468360

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