Private debt

CVI is the leader of the private debt market in Poland

For a variety of reasons and in many business situations traditional forms of financing (ie credits/ loans) are not efficient. Until recently, an entrepreneur who needed additional capital for growth had a limited choice between banks, the stock exchange or private equity funds.

Private debt is a relatively new class of assets, which is gaining popularity. Private debt means direct debt financing of enterprises by entities other than banks. With private debt financing provided by CVI, an entrepreneur is able to obtain the required funds through a transparent and quick investment process resulting in a flexible financing structure that traditional financing providers cannot guarantee.

Private debt key advantages

How private debt
differs from a bank credit?

Private debt financing in form of corporate bonds is provided by CVI as a result of bilateral negotiations. During this process the financing structure is tailored to the needs and business specific of the company. This offers flexibility which is beyond banks’ reach. Moreover, the process itself is noticeably shorter and usually does not take more than four weeks.

How private debt differs
from private equity?

Private debt financing means additional capital for company growth without changing shareholders structure. A private debt fund also remains passive in the area of company management, it does not require changes in supervisory or managing boards.

What is important for CVI?

When analysing a given project CVI focuses not only on historical performance but mainly on company prospects and future growth We focus mainly on the future cash flows.

Is security collateral always required?

While CVI is making its investment decision, it mainly focus on assessment of the future cash flows. When future cash flow are reliable CVI does not require any collaterals . In some cases, however, collaterals will be required and can take the form of a mortgage, pledge on assets or shares, or a guarantee provided by another entity.

What due diligence looks like?

This depends on the situation. In some cases it is limited to an analysis of the provided documents and a series of meetings with company management. In others it will be necessary to employ external advisers who will conduct full financial, tax or legal due diligence.

CVI Dom Maklerski  („CVI”) is an independent asset manager that continues the activity of  Credit Value Investment.

Credit Value was set up in 2012 and quickly became leader in non-bank financing in Poland.