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Sector

Private Debt

Geography

Vienna, Austria and Warsaw, Poland

Deal Date

October 2021

Deal Size

€4.0m

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About the Manager

Based in Austria and Poland, Syntaxis Capital Limited (“Syntaxis”) is a private debt investor dedicated to providing long term capital to fast growing medium-sized companies in Central Europe - predominantly in Poland. Syntaxis focuses on credit to the mid- to lower mid-market, where access to suitable finance is increasingly difficult to obtain. Syntaxis raised €260m across Funds I and II and recently had a €90m first close of Fund III.

The core of Syntaxis' and its advisers' team has been working together for the past 15 years and its track record dates back 27 years in Europe. Syntaxis was founded in 2006.

Investment Approach:

Syntaxis Capital

  • Provide convenient financing solution with a blend of senior debt and equity exposure that yields attractive returns

  • Invest in cash-flowing operating companies with EBITDA typically ranging from €2.5M - €5M

  • Target sponsorless transactions and actively partner with these businesses to unlock value

  • Aim to typically be the only secured term lenders in the capital structure of the portfolio company

  • Avoid providing a loan without having some equity upside

  • Maintain relatively low deal leverage

  • Investing in under-served markets leads to attractive investment terms and pricing

About the Deal

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Investment Amount

€4 million

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Structure

Preferred equity interest senior in the structure until VPC has realized its preferred IRR. Thereafter, entitled to pro-rata economics.

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Capital Protection

Investment was contingent on the Company raising Fund III, and is collateralized by contractual management fees and GP commitments. Negative consent rights including, but not limited to, anti-dilution, anti-circumvention, and seniority protection.

The Manager's Use of Proceeds

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To refinance shareholder loans and fund GP Commitment