Alpha International : launches fund finance platform

Alpha launches fund finance platform

01.11.2023

Alpha Group launches digital fund finance platform.

Global financial solutions provider Alpha Group has launched its digital fund finance platform, enabling alternative asset funds to instantly screen their borrowing requirements against a universe of over 250 lenders to find their ideal provider in a matter of minutes.

With over 250 lenders in the marketplace, each with their own unique lending appetites, finding a suitable fund finance partner is a challenging and time-consuming process for borrowers. Furthermore, unless borrowers engage with multiple lenders, it is very difficult for them to validate the competitiveness of the terms they receive. Given the sheer size and ever-changing nature of the lending market, this is a perennial challenge to solve via manual processes. Using Alpha, borrowers can screen their specific requirements across a marketplace of over 250 lenders in a matter of minutes. The solution has been born out of Alpha's Institutional division which has been providing a suite of financial solutions to the private capital industry since 2018. Speaking on the solution, Alpha's Managing Director of Institutional, Sam Marsh said:

"The process borrowers undergo to find a suitable lender is much more complicated and time-consuming than it needs to be given today's technology. Our research shows arranging a facility will typically take 3-9 months when screening across a pool of lenders, and this time can dramatically increase for more complex facilities. Given the size of the marketplace and the time it takes to screen it, the question therefore becomes - how do I know I've got the best lender for my fund? From speaking with borrowers, this level of market screening is not viable through traditional methods, as it is either too internally time-consuming or carries a high cost to outsource. This is where we are helping - by combining Alpha's technology with our extensive lender network, we are able to take a process that would historically take weeks and condense it to a matter of minutes. At the same time, we're providing borrowers with the confidence that the terms they have received are properly market-tested."

Working alongside Marsh to lead the solution is Adam Heaysman, who joined Alpha with over 20 years' industry experience in the fund finance industry. Whilst the platform offers clear benefit to borrowers, Heaysman highlights that a digital way of doing things benefits the lenders on the other side of the equation too, as is evidenced by the 250+ that feature on the platform.

"Having been both a borrower and lender in the alternative investment market for over 20 years, I've seen significant amounts of time and resource wasted by both parties simply trying to align lending appetite with borrowing requirements. With our platform, lenders can be confident that their lending criteria is accurate and up to date, enabling them to engage with pre-qualified borrowers who they already know match their appetite. With an established client base of over 1500 investment managers, the platform represents an easy and efficient source of new business for lenders."

The platform is available as a standalone offering but can ultimately act as a starting point for what is a full end-to-end fund finance intermediary solution that Alpha provides - from identifying the right lenders, all the way through to executing a facility. Heaysman concludes:

"We were conscious that borrowers have different levels of resource and/or experience, and therefore our focus has been on building a modular solution that enables clients to pick and choose the level of support that best meets their requirements. What's always consistent though is the efficiency and transparency that they will experience at each stage of the process."

The platform was soft-launched in May to Alpha's existing client base and has already been used in over 20 facilities, covering GP Co-invest, Capital Call and NAV facilities. For those wishing to find out more or arrange a demonstration, follow this link to our solutions overview and submit an enquiry form at the bottom of the page.