Service

Debt SPV Structuring & Management

Debt SPV
Debt SPV
Debt SPV

Debt SPV Structuring & Multi-Borrower Loan Note Offering at Bridge Capital

Bridge Capital’s Debt SPV service offers a robust and transparent investment vehicle designed to pool capital from professional investors and channel it into diversified loans for vetted SMEs in Northwest Europe. Structured as a Dutch B.V. or STAK entity, the SPV issues loan notes with fixed returns and strong risk mitigation, supporting fund managers and investors alike in achieving strategic financial objectives.

For Fund Managers and Sponsors:

  • Efficient Capital Deployment: The SPV structure enables streamlined aggregation of investor capital and targeted lending to 3–5 pre-vetted SMEs, facilitating portfolio diversification while maintaining manageable exposure limits.

  • Governance & Compliance: Operating under strict regulatory oversight by licensed partner Aramis Capital, the SPV ensures AML/KYC compliance, investor categorization, and adherence to MiFID requirements.

  • Risk Mitigation: At least 66% of capital is secured via tangible collateral, guarantees, or optional credit insurance, reducing credit risk and enhancing the SPV’s credit profile.

  • Fee Structure & Incentives: Transparent fees including upfront structuring (1–2%), performance-based success fees (up to 3%), and optional carry align interests and reward effective portfolio management.

For Investors:

  • Attractive Fixed Returns: Investors receive fixed coupon yields between 6% and 8% per annum, with loan tenor ranging from 12 to 36 months.

  • Diversified Exposure: The portfolio approach limits single borrower exposure to a maximum of 40% of total capital, mitigating concentration risk.

  • Security & Transparency: Investors benefit from secured loans backed by real estate, equipment, guarantees, and credit insurance, alongside transparent reporting and governance.

  • Regulatory Safeguards: Participation is restricted to MiFID professional clients, ensuring compliance with applicable regulations and investor protections.

  • Capital Flow & Servicing: Borrower repayments flow directly through the SPV, which services coupons and principal payments on a pro-rata basis, ensuring clear and timely investor distributions.

Key Features:

  • Offering Size: Up to €5 million in loan notes

  • Term: 12 to 36 months

  • Target Borrowers: 3–5 SMEs across NW Europe, thoroughly vetted by Bridge Capital

  • Use of Funds: Working capital, expansion, or refinancing for SMEs

  • Regulatory Structure: Debt SPV governed by Aramis Capital, Bridge Capital as tied agent for investor relations and product promotion

  • Risk Controls: Continuous borrower credit monitoring, ring-fenced funds, and strict compliance oversight

Bridge Capital’s Debt SPV solution is designed to balance growth opportunities with prudent risk management, providing fund managers and investors with a clear, secure, and well-structured platform to engage in SME debt financing.