Private Placements.

For a variety of reasons, the banking sector is in the process of gradually withdrawing from providing long-term financing to companies across all industries. Given their treasury profile and regulatory framework, in particular life insurers and pension funds are the natural substitute supplier being able to meet this vast demand. So far corporates in Germany and other European countries have predominantly utilized this opportunity to tap US capital markets through a costly multi-investor USD 100+ m placement process arranged by one or more investment banks.

For most potential issuers, this process does not promise satisfactory conditions in terms of complexity, flexibility, transaction cost risk and confidentiality – despite often competitive pricing. This is evidenced by the market situation e. g. in Germany, where only around 30 issuers, mainly with capital markets experience, have successfully issued since 2002.

Based on long-lasting and transaction-proven relationships to key institutional investors in the US and other developed countries, Acxit´s professionals have developed an infrastructure and a product offering which addresses all of the above mentioned parameters. As a result, companies with a demand on debt capital as low as USD 25 m and up to and over USD 200 m (or equivalent) can raise funds

• in a lean process more comparable to that of a bilateral credit facility
• without capital markets standards procedures including issuance of a Private Placement Memorandum, road shows, investor briefings etc.
• even without any rating, listing or publicity requirements
• at competitive pricing
• with tailor-made terms and conditions
• at significantly less costs and expenses and with a facilitated transaction cost management
• with the option of a discrete implementation process

Besides debt capital, also subordinated debt, mezzanine, equity and other forms of capital can be raised via private placements. Acxit is in the position to advise buy or sell side. Please ask our management partners for more information.

Acxit supports its clients with a full service approach. This includes the support in all transaction-related matters such as developing the investment story, identifying suitable investors/targets, setting up the deal team and coordinating the implementation until a successful issuance with terms and conditions satisfactory to its clients.