Cadence Advisory LLP

As Cadence Advisory heads into its eighth year, we are pleased to present the highlights of an exceptionally busy 2024. For the first time since inception, we blitzed through the ￡100m barrier in terms of successful debt mandates, delivering across a wide variety of sectors and structures, from a Senior-Secured acquisition ABL into a UK-sponsored manufacturer, to junior growth-funding for an AIM-listed legal services business, through to an ID and cashflow solution for an early-stage US-based manufacturer in the healthcare sector. We are proud to have delivered successful outcomes for our clients and PE sponsors over the year, and look forward to forming more successful partnerships in 2025. #debtadvisory #acquisitiondebt #workingcapital #growthcapital #privateequity

Cash with questions: how brands can secure new credit line Joe K. Wood has been featured in Drapers discussing his insights on the current financial landscape for retailers, particularly focusing on the expectations that lenders have for those seeking funding. The discussion sheds light on the complexities retailers face today, including fluctuating market conditions and the need for innovative financial strategies. Understanding these expectations is crucial for retailers aiming to navigate the funding process successfully. Read the full article: https://lnkd.in/eJjRsz_C #retail #funding #cashflow

ACP Cadence Advisory LLP has?appointed Joe Wood?as a new partner. Working from London, he will now work to?support organic growth and enhance sponsor-backed transactions.

Joe K. Wood discusses the recent Financial Times article regarding lenders flying blind on private equity risk. The Bank of England's cautious stance on LBO transactions is well-founded, especially given the current macro environment. Downturns often lead to higher insolvency rates, and the recent increase in the base rate by 500 basis points over the past two and a half years—from 25 basis points (16th Dec 2021) to 525 basis points (3 August 2023)—adds to the risk. However, amidst these challenges, there are strategic opportunities for sponsors to optimise their portfolios. Here's how: 1. Interest Optimisation: Sponsors should critically assess their portfolio company's interest payments. Are they overpaying? Sponsors can strategically reduce leverage and optimise their capital stack by refinancing existing debt or exploring alternative financing structures. 2. Collateral Utilisation: Asset-based lending (ABL) transactions allow sponsors to leverage collateral effectively. Companies can secure additional financing without diluting equity using assets such as accounts receivable, inventory, or PP&E. ABL-funded transactions provide flexibility and liquidity, especially through restructuring. 3. Dividend Recapitalisation: Profitable businesses in segments where enterprise value multiples remain depressed could benefit from dividend recapitalisation. Sponsors can deliver quick returns to investors by issuing debt to fund dividends. As with any portfolio review, they need to be assessed on a case-by-case basis. ACP Cadence Advisory LLP's vast knowledge and experience in ABL can support any portfolio review including the onboarding of companies/new transactions and exploring the art of the possible.??As a trusted advisor, we represent the client (and only work for the client) and always endeavour to provide the best solution without exposure to unnecessary risk. https://lnkd.in/gXF2TXm3 #debtadvisory #privateequity #ABL #risk

ACP Cadence Advisory LLP are delighted to announce the appointment of our new partner Joe K. Wood. Joe brings a wealth of experience and an extensive network of lenders in both the UK and European markets. His focus will be on asset-based finance, assisting private equity-backed companies in sourcing, negotiating, and optimizing debt finance across a diverse and dynamic debt market. With a deep understanding of complex financial structures, Joe is well-positioned to provide strategic guidance to clients. Read the full details here- https://lnkd.in/ey6ZeqtC #debtadvisory #newappointment #ABL #assetbasedlending #privateequity