A leading funding partner for European entrepreneurs
PCP provides tailored funding solutions to mid-sized companies in Northern Europe. We act as a strategic financial partner to companies who need additional funds to expand organically or via acquisitions, refinance their balance sheets or restructure their operations. Over the last 15 years, we have engaged and invested in over 130 companies and helped them maximize their potential.
PCP’s strategy is founded on Proventus’ nearly 50-year history of active and independent investing in companies in change, building relationships and partnerships with management teams and owners of mid-sized companies. PCP started as a credit strategy on the balance sheet of Proventus AB and has over time become an independent credit investment manager, building on the tradition and roots of Proventus AB.
Over the last decade, following the events of 2008 when the banking system came under severe strain, there have been substantial structural shifts in the European debt capital markets. In addition to political and regulatory changes, banks have become more restrictive in their lending, institutions are looking for yield in order to fulfil large commitments in a low return environment and alternative sources of credit funding, such as institutional lending, have grown.
A lot of the money that has poured into this market is going where there are well packaged, intermediated and widely syndicated credit opportunities, since this is the quickest way of finding credit exposure. The largest part of this market, corresponding to around 80% of the private lending market, is the so-called sponsored market, which focuses on funding buy-outs by private equity funds. PCP has chosen a different strategy, based on our history of solving complex situations and building relationships with owners and management teams of privately owned businesses. We see our role as addressing complex funding challenges that are not suitable for traditional financing and are outside the more transparent credit market. These situations require much more work – both to find them, to properly analyse them and not least to structure them in a way that delivers what the company needs, while at the same time keeping the risk for negative surprises low. We act in this market as creative problem solvers and strategic financial partners to the companies we fund.