Alpha Match Brings Best-Execution and Efficiency to the Fund Finance Market Against a Backdrop of Increased Regulation and LP Scrutiny

Alpha Match enables private capital funds to instantly screen their fund finance requirements against an impartial database of more than 290 lender profiles to secure the most appropriate lender and terms.

LONDON--(BUSINESS WIRE)--Alpha Group International plc (LON:ALPH) today announced the launch of Alpha Match. Alpha Match is Alpha’s digital debt intermediary service. It is disrupting the fund finance industry with its impartial database of more than 290 lenders – making the process of finding and securing the right lender and terms more transparent and efficient.

Increased regulatory pressure coupled with consolidation in the fund finance space has resulted in a much talked about liquidity gap, with small and mid-cap private capital funds struggling to secure fund level facilities. However, Alpha Match has identified and captured more than 290 lender profiles active in the space. While it is certainly true that the lender landscape has changed and appetites have shifted, Alpha Match has found there are plenty of bank and non-bank lenders active across the entire spectrum of the private capital fund market.

With many GPs no longer being served by long-standing relationship banks or looking for additional lenders for syndicates or to mitigate counterparty risk, it has been challenging for them to source new lenders in the current market.

Enter Alpha Match. The first-of-its-kind digital platform matches borrower’s requirements with current lender data in real time.

“Debt intermediation isn’t new; however, it can be costly and limiting. Alpha Match is a technological solution that instantly validates criteria across a vast range of data points, which our clients choose to use in different ways. For some, they simply want to independently verify existing lender terms; others use it to outsource the process of debt origination at speed; while other clients additionally make use of our fund finance experts to support them on every step of the process, from the initial screening report, to securing heads of terms, right through to final execution. Alpha’s mission is to empower alternatives. With Alpha Match we are making debt intermediation efficient, cost effective, and inclusive to all,” said Sam Marsh, Chief Executive Officer – Institutional

"The Alpha team were fast and effective in helping us secure a new lender after our core relationship bank was unable to provide us with a subscription line. The initial distillation of the market, focusing on providers that fit the Phoenix criteria, saved considerable time and the platform's modular approach meant the process was flexible, efficient and cost effective," said Steve Darrington, Chief Financial Officer, Phoenix Equity Partners.

Transparency and best practice

Against a backdrop of increased LP scrutiny of NAV facilities, Alpha Match comes at a critical time for private capital fund managers, their investors and lenders.

Towards the end of last year, the Institute of Limited Partnership Association (ILPA) warned members about managers using NAV facilities without informing their investors. This perceived lack of transparency, along with several other rising concerns, prompted the LP trade body to put together specific NAV guidance, which is expected to be published in May.

However, as the fund finance market (despite its size), and particularly the NAV facility space are still nascent and emerging markets – there is little infrastructure, particularly when it comes to intermediation and risk mitigation practices.

Alpha Match is the only independent digital intermediary. It provides the greatest levels of transparency available in the market today.

With the ability to match lending requirements against the largest database of active lenders in the space – not only can GPs ensure they are working with the most appropriate lender for their needs, but they can quickly and easily share screening reports with LPs in order to provide clear communication and highlight the steps they have taken to secure financing in the most transparent and cost-effective manner.

As part of the platform launch, borrowers will be able to screen their initial requirements via the company’s website to see how many lenders currently match their key requirements.

For more information on Alpha Match or to arrange a demonstration, visit www.alphagroup.com/match or contact: [e-mail].