GSCF and Pemberton forge an alliance
In a groundbreaking move, Global Supply Chain Finance (GSCF) and Pemberton Asset Management have joined forces to launch a new venture offering flexible and creative supply chain finance solutions. The collaboration aims to provide working capital solutions to larger and mid-sized firms, helping them manage day-to-day operations, execute growth strategies, and respond effectively to market demands.
At the heart of this partnership is the delivery of third-party inventory finance solutions, designed to enhance cash flow and working capital efficiency for businesses grappling with capital constraints. The initiative, which will operate primarily on the basis of credit insurance, is specifically tailored to address the challenges faced by "growth corporates," defined as companies with annual revenues between $50 million and $1 billion.
By improving cash conversion cycles and reducing days payable outstanding, the supply chain finance solutions offered by GSCF and Pemberton can lead to significant savings in interest costs, inventory carrying, and supplier discounts. This, in turn, strengthens buyer-supplier relationships and enables companies to better meet market demand and growth opportunities.
While Pemberton Asset Management has experience in sectors such as ceramics, the supply chain finance solutions from the GSCF-Pemberton collaboration appear broadly applicable across various industries serving growth corporates, rather than being limited to a single sector. However, the main sectors the platform will initially focus on are technology and chemicals.
The liquidity for the platform will come from Pemberton's investor base, but it's important to note that the financing offered is not limited to the technology and chemicals sectors. This means that businesses from a wide range of industries could potentially benefit from this innovative offering.
Pemberton Asset Management will act as the liquidity provider for the new platform. Interestingly, Pemberton is 40% owned by the UK insurance group Legal & General, adding another layer of financial stability to the partnership.
The CEO of GSCF, Kendall Stevens, expressed his excitement about the new venture, stating that the partnership will revolutionise the way businesses access external financing, ultimately driving growth and success in the global market.
In this collaboration, the new supply chain finance solution, primarily based on credit insurance, is designed to offer working capital solutions across various industries, not limiting to technology and chemicals, thereby aiding growth corporates in managing capital efficiency and meeting market demands. The venture's liquidity comes from Pemberton's investor base, and its financial stability is further bolstered by Legal & General's 40% ownership of Pemberton Asset Management.
