Creditstar
BCP advises Creditstar Group on a €25,000,000 capital raise (private debt)
Transaction details
- Client
- Creditstar
- Other side
- Confidential investor
- Business
- Pan-European consumer lending
- Practice
- Credit Portfolio & Structured Finance
- Service
- Debt Advisory
- BCP’s role
- Financial advisor
- Transaction
- Total amount raised: €25,000,000
- Interest
- Investor interest attracted by BCP: over €100,000,000
- Closed
- 2023
In the client’s words
We enjoyed working with Blu Capital Partners (BCP), led by Tudor Mafteianu, on exploring our capital raising options, including raising private debt capital and structuring a securitization vehicle.
BCP guided us through the capital raising process and advocated on our behalf, articulating Creditstar’s unique positioning for growth and profitability.
The breadth of their network, their tech expertise and their structuring know-how resulted in BCP attracting term sheets from a large number of international private debt investors.
Overview of Creditstar
- Creditstar Group is one of the leading Baltic consumer lending companies, with a pan-European presence and an operational track record of growth and profitability thanks to its tech-driven credit underwriting and streamlined operations.
Overview of the Transaction
- BCP advised Creditstar on different growth funding structures, including private debt and securitization vehicles.
- Management’s preferred structure was private debt funding, to refinance existing liabilities and provide additional growth capital.
- BCP attracted interest for around EUR 100 million of private debt from international private debt investors, at a competitive pricing.
- BCP also contributed to raising a Nasdaq-registered corporate bond for Creditstar, which closed in June 2020 at EUR 18.3 million.
Importance of the Transaction
- A significant private debt facility allows Creditstar to consolidate its liabilities, reducing the management time spent on investor relationships.
- Private debt also gives Creditstar a stable, long-term capital base to weather volatility in the consumer lending market.
- It diversifies Creditstar’s funding further away from corporate bonds, P2P lending and direct lending.
Blu Capital Partners Credit Portfolio & Structured Finance Advisory’s Role
- BCP acted as strategic and financial advisor to Creditstar.
- BCP supported Creditstar throughout the process, from structuring to letter of intent, and advised on the transaction documentation.
- The transaction highlights BCP’s expertise in consumer and specialty lending, and its capacity to generate favourable outcomes for technology companies.
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