03 Jun It takes mettle to turnaround a business.
Mettle Corporate and Specialised Finance brings an expanded focus on business rescue and PCF ( Post-Commencement Funding), that is engineered to deliver a powerful dual impact: generating excellent risk-adjusted returns for discerning PCF investors, while simultaneously playing a pivotal role in impactful economic and social revitalisation.
For three decades, Mettle Corporate & Specialised Finance (“Mettle”) has structured innovative solutions in the complex world of corporate and specialised finance. This is testament to our enduring commitment to navigating intricate financial landscapes and delivering exceptional outcomes through sophisticated capital solutions.
Risk mitigation and value creation.
Mettle’s team brings together over one hundred years of combined experience allowing us to excel in risk mitigation and value creation. This depth of knowledge forms the base of our operations, enabling us to dissect multifaceted financial challenges with precision and foresight, often identifying alphagenerating opportunities. Mettle is now poised to extend this legacy into the vital arena of business rescue and post commencement financing leveraging our experience to address pressing economic needs with the same dedication and sophisticated financial architecture that has defined us.
Warding off liquidation.
According to the Companies and Intellectual Property Commission, since commencement in 2011 approximately 5,000 companies have been placed in business rescue. Approximately 1/3 of these have been successfully turned around. PCF financing is the lifeblood of companies in the protective state of business rescue, offering a crucial pathway to survival and eventual revitalisation. Without timely and sufficient access to PCF, the prospects of these companies warding off liquidation are exceedingly slim.
The true cost of business failure.
Assisting in their turnaround saves jobs and preserves the value that the owners are relying on for their retirement planning. As SARS Commissioner Edward Kieswetter remarked, “It takes 100 businesses to create one successful business. So, for every one we lose, we will have to have a hundred if not more entrepreneurs to take the risk [to start a new business.]”
Meeting the challenge.
The reality is that traditional avenues of finance become unavailable once a company has gone into business rescue due to perceived risks and the impact of regulatory frameworks like Basel III, which have reduced bank lending appetites. The legal framework supports interventions, permitting companies undergoing business rescue to secure new financing. Critically, this legislation grants PCF providers a super-preferent ranking in claims, significantly enhancing the credit profile of these event-driven opportunities. It is precisely this challenge that our new service offering, rooted in sophisticated structured finance principles, is designed to meet. Mettle’s offering facilitates the critical flow of capital and expertise to where it is most urgently needed, ensuring robust downside protection for our capital partners. Our expanded focus on business rescue and PCF is engineered to deliver a powerful dual impact: generating excellent risk-adjusted returns for discerning PCF investors, while simultaneously playing a pivotal role in impactful economic and social revitalisation.
Financial solutions and structuring expertise.
We aim to provide investors with high-calibre advisory services and meticulously crafted financial solutions, including bespoke structuring expertise, enabling investors to confidently navigate the specialised landscape of PCF and identify potential risk-return arbitrage opportunities. Our core objective is to actively aid in the sourcing and strategic deployment of PCF. This will direct capital to businesses with good prospects of recovery, while limiting the down-side risk of our investors, and generating risk-adjusted returns for our investors.
William Marais
B.A., LLB (cum laude), Hons B.Com (Financial Management), Grad Dip (Taxation).
+27 82 8073349.
wmarais@mettle.net
https://mettle.net/investments/corporate-and-specialised-finance