First of all, in order to introduce SFF Magazine readers to Beka Credit, what is it?
We are the private debt consulting division of Beka Finance specialized in providing alternative financing solutions to small and medium-sized companies. Our objective is to contribute to the growth of companies by offering structured financing solutions tailored to their needs, complementing the offer of financial institutions.
Beka Credit’s philosophy and credit management capabilities allow us to offer our investors an optimal risk-adjusted return.
Beka Credit is founded and managed by a team of professionals with a long experience in alternative debt management and domestic and international banking. The team includes a unique combination of vast expertise in credit management with a deep understanding of the dynamics and financial needs of companies.
Triana SME Leading is your first senior debt fund. What are the main features of this investment vehicle?
This vehicle invests in long-term loans for small and medium-sized Spanish, Portuguese and German companies, under the umbrella of the European Investment Fund guarantee programs. These long-term financing solutions are tailored to each company, taking into account its repayment capacity and the needs to fulfill its business plans. The average amount of each operation is €4.4Mn and the Fund can invest in operations with a minimum of €1Mn and a maximum amount of €10Mn.
The vehicle invests on a multi-sector basis, with the exception of those sectors excluded by the European Investment Fund.
What is its differential value in relation to other funds that at first sight may seem similar?
The structuring and credit analysis capabilities that Beka Credit makes available to this Fund are unique. These are long-term financing operations for SMEs and medium-sized companies, structured and analyzed by an investment team highly specialized in structured finance, providing the flexibility and benefits of injecting long-term financial support as an essential component for the fulfillment of the business and investment plans of the target companies.
"Beka Credit is Beka Finance's credit platform specialized in providing alternative financing solutions to European companies. Our objective is to contribute to the growth of companies by offering structured financing solutions tailored to their needs, complementing the offer of financial institutions."
The fund is registered in Luxembourg. What led you to make this decision?
Luxembourg has become an important European financial center that attracts international capital seeking alternative investment strategies. This large asset class benefits from a favorable regulatory environment in Luxembourg, including the European passporting mechanism, so that the Fund may be of interest to different investors domiciled in different EU countries. In this way we aim to make the Fund multi-jurisdictional both in its available resources, contributed by investors, and in its asset portfolio.
In general, how is alternative funding performing in Spain?
Alternative funding is a complement to bank loans, and its appropriate use by companies can and should have a positive impact, providing a diversified and specialized funding mix to meet the different needs of companies (short and long term, transactional, etc.).
In Spain, this type of funding represents a great opportunity for both investors and companies, since alternative funding still represents a very small percentage of the total funding available to companies. Financial innovation tends to be applied first to large companies, whose financing mix is much more balanced, with the share of investors and markets accounting for approximately 50% of their total financing. Small and medium-sized companies must also move towards this diversification, which will contribute to deconcentrate the stock of credit in the Spanish economy and make it more diversified. This will contribute to a better price structure in the market, and to a correct distribution of risk among the different players in the credit market.
How does Beka Credit face the challenge of sustainable finance?
We are very active in promoting sustainability from the credit investment side. This is a major issue for investors interested in alternative financing and we are including ESG eligibility criteria, tailored to each credit strategy, in the funds we advise.
In particular, Triana Fund will have a specific investment focus on sustainable companies, or companies with sustainability investment plans.
What are the next projects that Beka Credit faces in the medium and long term?
We are designing new lending strategies to complement bank loans, both in the short and long term, which will provide optimized solutions for companies and attractive investment opportunities in terms of risk and return for investors.