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September 23, 2021

White Oak acquires trade receivables business from Greensill

By Alejandro Gonzalez

White Oak Global Advisors has bought US-based Finacity, a trade receivables company, from Greensill, the collapsed supply chain finance company.

Finacity originates, structures and places over US$100bn worth of business yearly with over 50 leading financial institutions in asset-backed security structures, according to a press release.

In August, Bloomberg.com reported that Greensill Capital’s bankrupt US unit won court approval to sell Finacity for $7m after reaching a deal with unsecured creditors.

“The transaction includes an agreement with Finacity founder Adrian Katz, who dropped demands for $21.2m in payments related to Greensill’s purchase of Finacity in 2019. In return, the bankrupt US unit will not try to sue Katz or certain other insiders for their role in the deal,” the report from Bloomberg said.

Finacity has facilitated transactions for receivables denominated in 58 currencies with obligors in more than 175 countries making it the largest non-bank trade finance platform globally.

The deal will see Adrian Katz remain as Finacity CEO and substantive equity holder, working closely with the new leadership, the business said in a press release.

Finacity will operate as a standalone business but will work closely with the buyer in several areas where there are synergies – including White Oak deploying institutional capital on Finacity’s platform.

Finacity is headquartered in Stamford, Connecticut, US, and will be rebranded as White Oak Finacity. The interest in acquiring Finacity has been long-standing – dating from before the business’ original sale in 2018, White Oak said.

Adrian Katz, CEO of Finacity Corporation, said: “Everyone at Finacity is excited to be starting this new chapter of our story as part of White Oak. We have known the leadership at White Oak for a long time and are convinced that this move is absolutely the right one to enable Finacity to thrive.”

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