This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Alcentra Announces Its Participation In HM Treasury Business Finance Partnership

Stocks in this article: BK

LONDON and NEW YORK, Dec. 6, 2012 /PRNewswire/ -- Alcentra, BNY Mellon's boutique specializing in sub-investment grade debt capital markets in Europe and the United States, is one of four investment managers selected to participate in HM Treasury's "Business Finance Partnership" initiative, pursuant to which initially up to £200 million of financing will be provided to high quality, middle-market UK companies in the form of secured loans comprising first lien senior, uni-tranche, mezzanine and mezzanine-related investments.  The arrangement with HM Treasury is the first part of Alcentra's European direct lending strategy.

Alcentra aims to grow the strategy over the next 12 to 15 months and to provide a pool of capital for investment in middle market businesses across Europe.

"Alcentra believes that the middle market sector provides an important contribution to the UK and European economies," said David Forbes-Nixon, chairman and chief executive officer of Alcentra.  "We believe that the reduced participation in this sector by traditional banks provides an attractive opportunity for private capital to earn favourable risk-adjusted returns by providing financing in their place."

Alcentra will seek to invest a majority of the capital in senior and uni-tranche loans and a minority in mezzanine and mezzanine-related investments typically in middle-market cash generative businesses.  The financing is expected to support leveraged buyouts (LBOs), corporate requirements and the provision of development capital.

The focus will primarily be on companies with leading and defensible market positions, stable and predictable cash flows, non-cyclical industries, and experienced management teams and typically with an annual consolidated global turnover of up to £500 million in respect of their continuing operations. The average investment size is expected to be in the range of £10 to £25 million across all loan tranches per entity invested in.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,376.40 -302.30 -1.71%
S&P 500 2,028.32 -28.77 -1.40%
NASDAQ 4,690.0040 -81.7590 -1.71%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs