CrescItalia Lab reaches €41 million of disbursement to SMEs

The fintech platform CrescItalia Lab of Crescitalia Holding has generated and transited a turnover of more than $48 million (€41 million), despite the economic situation generated by the pandemic in the first half of 2020, 

Since the beginning of its activity more than a year ago, the platform has evaluated almost 5,000 invoices submitted by assignor companies, selecting about 50% of them for investors with gross weighted returns significantly higher than expected, with a percentage of insolvency (however neutralized by insurance policies taken out for coverage with a primary insurance company) lower than 0.50% of the nominal value of receivables purchased.

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The platform will be used to select the investments of the SGT Crescitalia Invoice Fund

So far, the platform has financed the acquisition of trade receivables with securitisation transactions, which envisage the assignment of receivables without recourse on a revolving basis. The invoices are guaranteed by an insurance contract. 

The last announced transaction was an operation up to a maximum of $30.6 million (€26 million) structured by Zenith Service which gave rise to asset-backed securities issued in a single class and subscribed through private placement by an institutional investor. The previous transaction, also structured by Zenith Service, was announced in September 2019. In that case it was a $29.4 million (€25 million) securitization conducted through CrescITA spv srl.

The CrescItalia Lab platform will be used to select the investments of the SGT Crescitalia Invoice Fund, managed by Sagitta SGR, a subsidiary of Arrow Global. Mattia Donadeo Spada, CEO of CrescItalia, added: “We have contributed to the creation of several securitization vehicles in order to make the platform operational and to provide investors with a complete analysis of risk/return dynamics, asset class, and track-record achieved to date. The data is extremely encouraging, with a fractioned and diversified credit portfolio throughout Italy and the EU area, returns that exceed expectations, and transactions that continue to grow. Therefore, the platform is now proven and we are eager to support the Sagitta SGR fund in its operations and continue to support Italian companies in a historical period like the present one.”

The objective of the new SGT Crescitalia Invoice Fund is to purchase without recourse trade receivables

In detail, CrescItalia Lab is used in the origination, screening, analysis of assignor companies, assigned debtors, individual receivables and their origin, as well as the management of the entire purchase process, asset management, middle and back office functions to support the SGR, the custodian bank, the risk manager and the valuation function.

“The data collected by the platform are extremely encouraging and give us further confirmation of the validity of the product in a historical period such as the one we are experiencing, this fund is a concrete help for SMEs that can recover liquidity through an additional channel for the sale of their trade receivables and represents an extremely interesting opportunity for institutional investors who can diversify their investments with higher returns compared to other low-risk jobs, thanks to the insurance coverage of a leading international insurance on purchased receivables,” said Claudio Nardone, CEO of Sagitta sgr.

As is well known, the objective of the new SGT Crescitalia Invoice Fund is to purchase without recourse trade receivables with maturities between 30 and 180 days, also claimed by SMEs from primary debtors. It is a closed-end fund and is aimed at institutional investors, insurance companies, pension funds, banking foundations and professional investors in general. The vehicle, with a collection target of $236 million (€200 million), was launched in July 2019. Sagitta is preparing to launch a large battery of funds, backed by all the Bank of Italy authorizations necessary for the management of real estate funds and private equity, private debt and credit funds. In most cases the new funds will see Arrow Global in the role of anchor investor. This was announced at a press conference in May 2019. 

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First published in Be Beez, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

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