A group of former executives from Greensill Capital, the collapsed supply chain finance lender, will unveil a new trade finance venture this week targeting blue chip companies.
Sky News has learned that Silver Birch Finance, co-founded by Sean Hanafin, will announce its launch on Thursday.
It will be the first major new entity created by former Greensill executives since the company collapsed into bankruptcy in March.
Mr. Hanafin worked for 18 months at Greensill, most recently as president and global head of origination for multinational companies, but the majority of his career has been spent with Citi and Standard Chartered, the emerging markets lender.
At Silver Birch Finance, Mr. Hanafin is joined by former Greensill colleagues, including John Goodridge and Tim Armstrong.
Between them, the five founders have more than a century of collective experience in trade finance, according to an insider.
The new company’s infrastructure is being funded by seed money provided by partners at TDR Capital, the private equity firm that recently organized the buyouts of Asda and Aggreko, the provider of temporary energy solutions.
AgFe, a regulated asset management company, is also a shareholder and strategic partner of Silver Birch Finance, according to insiders.
Mr Hanafin and his colleagues have reportedly identified the provision of working capital to businesses in sectors such as consumer goods, industrial products and natural resources as a major continuing opportunity.
Analysis by Moody’s, the credit rating agency, suggests that the addressable global trade finance market is around € 55 billion, with no provider having a market share of more than 0.5%.
People close to Silver Birch Finance have said it will not provide supply chain finance of the type offered by Greensill Capital.
The collapse of Greensill and subsequent revelations about the lobbying activities of David Cameron, the former prime minister who advised the company, has turned into a major political controversy.
Silver Birch Finance plans to target only corporate clients and will not work with government or public sector organizations, according to insiders.
By providing working capital financing, the firm will enable its clients “to benefit from the certainty of their cash management, allowing them to invest and reallocate capital sooner than they could otherwise. », According to a person close to his projects.
“The model here is based on receivables and inventory financing, not debt,” the person added.
A spokesperson for Silver Birch Finance has confirmed that it will announce its launch this week.
Several of Greensill Capital’s businesses have been sold by directors or dissolved since the company collapsed.
Dozens of its executives and other employees have been recruited by other players in the non-bank lending industry, including Pemberton and Taulia, according to city sources.