AI Issue 5 2018

22 Acquisition International - Issue 5 2018 Capital@Rent provides bespoke private debt solutions for SMEs and mid-market companies in Belgium, the Netherlands and Luxembourg. We profiled the firm and gained an insight from the team at the company; Joris Claeys, Mathieu Vandevijvere, Franky Houtteman, about the secrets behind the company’s ongoing success and the current state of the financial sector. ounded in 2007, Capital@Rent is part of Cennini Holding, the single-family office of the Claeys family in Belgium, which boasts an impressive track record of entrepreneurship of over 100 years. Dealing with a wealth of clients, the firm targets companies who hold decent track records, predictable cash flows and strong management. Typical finance transactions that the firm deals with, include Mergers, acquisitions, MBI, MBO, both sponsored and non-sponsored; expansion stage investments; refinancing; and finally, shareholder buy-outs. Predominantly, clients are private equity funds, family owned companies and executive (buy- in / buy-out) managers, and they are enticed to work with Capital@Rent due to its fast decision- making process, the team’s entrepreneurial and constructive approach in case of difficulties; and importantly, staff’s discretion and full independence across all matters. As part of a family office, Capital@Rent has a conservative and long-term investment approach. They invest family capital but also act as mezzanine agent for co-investors. Capital@Rent also co-manages a 100 mio euro mezzanine fund called ‘Mezzanine Partners’. The firm’s partner in this fund is PMV (the investment vehicle of the Flemish region). Mezzanine Partners acts as a co-investment platform for other families and institutional players. Currently, the finance industry is evolving constantly, with new developments and regulations arising every day. Interestingly, the Benelux financing landscape used to be dominated by financial institutions - Private debt has however gained importance over recent years. The growth in popularity is driven by an increase in regulatory constraints with financial institutions, and, more Company: Capital@Rent Contact: Joris Claeys, Mathieu Vandevijvere, Franky Houtteman Address: Kwadestraat 151A bus 51, 8800 Roeselare Belgium Website: www.capitalatrent.be / www.mezzapartners.be Private debt in the Benelux – Independence, Discretion&Expertise F IF180021 important, the need for more flexibility in the terms of the credit. Capital@Rent’s clients appreciate the fact that the team is able to deliver customised lending solutions that fit the needs of each individual client. Furthermore, the direct lending market is especially developed in the Netherlands with Belgium lagging behind. The main reasons of this are a more active private equity market; the less dominant position of the banks and the higher economic growth which leads to an increase in M&A activities, and capex requirements. Additionally, the Benelux market will likely see more SME’s frozen out of the bank lending market, this disintermediation process has just started in the Benelux but already exists in the UK and US. In this increasingly technology dominated generation, there are many challenges and opportunities which are presenting themselves to companies in this fast-changing environment. The team believe there are a few advances which they will have to adapt to in order to succeed in the future, including; “Within the financing sector: how will digitalisation, peer to peer lending, fintech impact the financing landscape? “Capital@Rent’s portfolio investments: Business models that exist for decades are now being questioned & challenged, typically fuelled by new technologies. The fast-changing environment creates both threats and challenges for our investments. “Lastly, we are at the peak of the credit cycle, with lots of cash available searching for return, leading to more flexible terms and pressure on margins.”