Working capital structuring and advisory firm Silver Birch has acquired technology firm Tradeteq, which specialises in trade finance asset distribution and securitisation, GTR has learnt.
London-headquartered Silver Birch, which is backed by partners at private equity firm TDR Capital and monetises portfolios of receivables for multinational companies, says the deal is part of its “strategy to grow both organically and through acquisition”.
By acquiring Tradeteq, which was founded in London in 2016 by Christoph Gugelmann and Nils Behling, Silver Birch says it has increased its working capital volumes currently outstanding by 50%, to US$1.5bn.
It will incorporate Tradeteq’s synthetic risk transfer solutions into its product offering, as well as its securitisation-as-a-service technology, which Silver Birch chief executive Sean Hanafin says is “highly complementary to [our] origination, structuring and financing capabilities”.
Tradeteq’s Gugelmann, who alongside Behling will support the integration of the two companies, says: “Tradeteq note investors will gain origination access to a broader private equity-backed corporate network, while our technology will drive greater efficiency and scalability across Silver Birch’s processes.”
Tradeteq has attracted significant funding since its launch nearly a decade ago, and has invested over US$40mn in building its technology platform over the last six years.
“We’re proud to have built a platform and business that are now joining a group committed to accelerating innovation, deepening market access, and driving the next phase of growth for this asset class,” Behling says.
Sources familiar with the deal add that for Silver Birch, the deal could be the start of a broader push towards private equity-backed consolidation in the non-trade finance market.
The acquisition also means Silver Birch joins the Trade Finance Distribution (TFD) Initiative, launched in 2019 to drive standardisation across trade finance assets and attract institutional investors to the sector.
The TFD Initiative is led by André Casterman, who says the acquisition will further expand its community.
“Businesses around the world show a growing appetite to work with new lending partners and to adopt digital trade solutions,” Casterman says.
Hanafin adds: “As a non-bank originator, we also look forward to joining the TFD Initiative network, further aligning with its goals to standardise and scale the distribution of trade finance assets through technology-enabled infrastructure and practices.”
