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Capital Markets: Raising Expectations (FT)

Date Posted: 25 June 2012

The article notes that Tenax Capital, a London-based investment company, has raised €250m from European insurance companies for its Tenax Credit Opportunities Fund, which will buy existing loans from shrinking banks and make new loans to small and mid-sized companies. “The banks don’t have much game left, but insurers are perfect lenders. They are big and patient,” says Michael Guy, manager of the Tenax fund. “We want to create a real, sustainable lending platform, and the field is wide open, as the banks are not doing much any more.”

Mr Guy also predicts that it will take many years before the UK has a fully functioning ecosystem of alternative capital providers. “There are clearly a lot of companies out there that need help, but it will take time for the funding market to change,” he says.

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