CORDET Capital Partners LLP ("CORDET") is delighted to share this short overview and highlights for 2020. In a year that saw huge dislocation and financial instability as a consequence of the COVID-19 pandemic, CORDET has demonstrated its "all weather" investment approach and its ability to assess and adapt to the changing environment, with strong deployment and performance.
This continued success has been recognised through a number of awards in 2020, including "Best Alternative Credit Advisor" UK winner by CFI in June, and being a finalist in both the Private Debt Investor Awards (“SME Lender of the Year”) in March and the Creditflux Manager Awards in June. CORDET has also recently been shortlisted for the Private Debt Investor 2020 Awards as "Lower Mid-market Lender of the Year" in in the European Category.
Significant deployment capabilities
CORDET executed 18 transactions across new and existing borrowers in 2020, including the recent investment of c. €40m in two borrowers within Waste Management and Technology (Biototal AB and MHP Solutions), both with COVID-19 resilient business models. In particular, CORDET Direct Lending Fund II has demonstrated significant deployment capability. The ongoing COVID-19 crisis has emphasised the growing need that smaller mid-market companies have for alternative financing solutions, as it is accelerating the retrenchment of banks from this segment of the market. In contrast to some other lenders that have chosen to focus solely on their existing portfolios, CORDET’s "all weather" investment approach enabled it to invest in new deals both in the benign environment pre-COVID-19 and in the current time of heightened uncertainty.
Continued resilience of existing portfolio underpinned by strong exits
In October 2020, CORDET successfully exited CSAM, a leading provider of specialised healthcare software in the Nordics, after the company completed an IPO. As an alternative credit investor, CORDET has been instrumental to CSAM's growth story by supporting the completion of four add-on acquisitions. The resilience of CORDET’s strategy of providing tailored support and flexible financing solutions is demonstrated by the current performance across its funds, with double-digit net IRRs and +1.3x net money multiples.
CORDET's active pipeline remains strong going into 2021
CORDET, continuing to leverage its longstanding relationships, has a deep pipeline of actionable opportunities across Northern Europe. As at January 2021 there are 43 live opportunities in the pipeline, with gross debt value exceeding €800m.
As a result of further retrenchment of banks and CORDET’s strong origination network across Northern Europe, the average number of credit requests received by CORDET per week over the last 18 months has grown from 8 to 9 (despite a short term fall to the January 2017 average of 6 credit requests at the height of the COVID-19 pandemic), with the current number trending on 11 credit requests per week on a rolling three month basis. In addition to this, the quality of credit requests received has significantly improved, with more credit requests falling directly within CORDET’s circle of competence. The challenge for CORDET is therefore one of quality credit selection, and not quality credit access.
CORDET team continues to demonstrate excellence in private credit
CORDET is passionate about maintaining momentum in the development of its more junior and mid-level investment professionals, and was thrilled to see Rebecca Fels awarded “Investment Leader of the Year – Sweden” at the Finance Monthly Women in Finance Awards 2020 and George Velikov recognised as one of Private Debt Investor’s “Rising Stars” for 2020.
We appreciate your support and would be delighted if you would like to vote for us as Lower Mid-Market Lender of the Year (Europe Category) in the Private Debt Investor 2020 Awards. To cast your vote, please click on the following link: https://www.surveymonkey.co.uk/r/WK568YK. The deadline for voting is Friday, 8th January 2021.
While we look forward to new opportunities and growth in 2021, we would also like to thank you for your continued support and inspiration during 2020, and wish you a happy and prosperous New Year.