Jo Bennett-Coles of FGI Spoke at the 2019 Commercial Finance Association Conference
London, February 27, 2019 – Jo Bennett-Coles, the Managing Director at FGI, was a panelist at the 2019 CFA Conference on February 27, held in the Wells Fargo offices. The debate led by Louise Harvey of Deloitte LLP (the moderator) had discussed, “What is the Future of Non-Bank Lenders and Traditional ABL?”
This was a diverse panel of lenders including in addition to Jo, Ian Corfield from White Oak, Kevin Haupert from M&G, Neil Kerridge from Wells Fargo. Nevertheless, the market is driving the need for higher levels of collaboration. Why? Because there are more options for clients, who are looking for finance. They want liquidity, flexibility, and efficiency. ABL perfectly fits the gap in a transaction up to $300m but can struggle above that. A shared collateral structure in more substantial deals is the solution. In the US, where the ABL market is further advanced, there are higher levels of collaboration which are evident through Intercreditor discussions. Debts funds have the cash and the appetite to lend but do not necessarily, have the tools or resources to monitor the collateral. They like ABLs because of their inherent discipline, and they want groups with cross border experience.
“He Ain’t Heavy, He’s my Brother.” So goes the song by the Hollies. Moreover, that was the message from the panel. We are a bit different from each other, but we can harmonize because, right now, that’s the way to get deals done.”