PrimeRevenue, a platform for working capital finance solutions, has established PrimeRevenue Capital Management, a new venture focused on offering alternative funding sources for its corporate clients and investment opportunities for investors looking to access new income sources.
The PrimeRevenue entity is headed by Richard Tynan, Managing Director of PrimeRevenue Capital Management, and is based in London. This new company offers low-risk and low-cost access to capital that allows businesses to be agile and deploy supply chain finance programs faster.
“As one of the largest originators of trade assets, we are revolutionising the market once again, allowing businesses to select from a broader pool of capital that they have not traditionally had access to. It is also the first time that mid-market and sub-investment grade companies get access to working capital finance,” says PJ Bain, CEO, PrimeRevenue, Inc.
Traditionally, banks played an instrumental part in financing working capital and non-bank funders had limited access to this market. “Given the current constraints in the international banking system and importance of supporting the growing demand for working capital finance solutions, it became imperative to develop mechanisms for investors to participate in these supply chain finance programs,” says Tynan.
Working capital finance has emerged as the new playing field for non-traditional funders. PrimeRevenue Capital Management gives non-bank entities such as insurance companies, pension funds, hedge funds, capital market investors and other financial institutions access to working capital finance. These trade finance assets typically have a very low risk profile and are amongst the highest performing assets in terms of risk-adjusted yield. These new funding sources further increase PrimeRevenue’s financing options with over 50 funding partners already being part of the largest supply chain finance platform in the world. Annually, PrimeRevenue processes more than USD90 Billion of transactions generating hundreds of millions in financing revenue for funding partners globally.
