The Post-pandemic Market Infrastructure Growth Opportunity

Hirander Misra | August 17, 2021 | 89 views

The current global pandemic has changed our mindset and habits, as we are forced to revaluate the current ways we do things by thinking further outside the box. Over the last 12-18 months there has been a complete contrast of fortunes in the capital markets technology sector, with some firms flourishing, some struggling to survive, and others having to reinvent themselves to do so. Here at GMEX Group it has presented a substantial opportunity for innovation, which continues to accelerate on the back of the momentum already built. 

One such opportunity centres on digital market infrastructure-enabled digital assets which, despite near-term market-driven volatility, will continue to experience increasing demand for solutions and services from institutional capital markets firms. 

Market Infrastructure Evolution

GMEX Group started as a FinTech company over 9 years ago and focused on supplying technology to traditional exchanges and post trade operators based on a partnership-driven approach. Over the last few years, as a growth-stage company, we have focused on both digital market infrastructure solutions (including issuance, exchange trading, clearing, settlement and digital custody for digital assets), as well as continuing with traditional market infrastructure enablement. Our hybrid market infrastructure approach has enabled us to deliver technologically advanced, institutional grade, future-proofed solutions that take advantage of the inherently positive characteristics of both traditional and digital market infrastructure.

In today’s environment, exchange matching engines, digital trading platforms and post trade systems need to embrace a hybrid ecosystem approach. Bridging the gap between traditional and digital capital markets, whilst effectively mapping to evolving regulatory frameworks, is essential. This requires an approach which encompasses traditional and digital assets, digital currencies, security tokens and digital securitisation of traditional assets including derivatives and commodities. The increasing regulatory requirements for digital asset infrastructure and the resultant demand for solutions that are fit for purpose has played into our core strengths.

We’ve worked to provide a complete hybrid market infrastructure product suite called GMEX Fusion, which is ideally suited for regulated exchanges, trading venues, custodians and banks focused on both traditional and digital assets of all kinds. Our solution set has been designed to support the latest technology and business challenges that are impacting the way traditional exchanges are looking to operate as they look to embrace digital transformation. GMEX Fusion also addresses the demands from the cryptocurrency exchanges, digital asset trading venues, Non Fungible Token (NFT) marketplaces and emerging markets looking to start-up or enhance their exchange ecosystem and support digital assets. GMEX is working with many of these entities across multiple jurisdictions as our footprint is very much global, with clients and partners all over the world.

Exchange 4.0

The Fourth Industrial Revolution (4IR) is driving technological innovation in many spheres, and with it comes the need to move from analogue to digital - and embrace Exchange 4.0. The industry-changing network will see exchanges, trading venues, post trade operators, custodians, and other services interconnect more seamlessly, with the ability to swap services and assets across jurisdictions and across different types of users. This transformational solution will necessitate digital exchange trading systems, order matching engines and post trade platforms to transition from the legacy solutions that have been around for decades.

We are now moving past the second and third generation of blockchain in financial services towards Exchange 4.0 at an accelerated pace.

As an industry, we’re in a state of flux which has merely been exacerbated by the crisis. If we look at FinTech firms now, I would argue it’s the most exciting time ever because so many new technologies are emerging. With blockchain on the one hand, and AI, Internet of Things (IoT) and quantum computing on the other. From being nascent, many of these are now starting to grow as well as integrate. With all this technology around, the opportunity for innovation is immense. But that’s counter-balanced by the inertia of existing legacy platforms, processes and mindsets.

We know how the smartphone revolutionised the way we communicate, online and in every other fashion. Even 10 years ago, we couldn’t have envisioned where we are now and the extent to which it’s developed.

We are now in the same place in financial markets. We don’t necessarily see it and despite the innovation there are many silos which don’t talk to each other effectively. There is strong client demand for the full spectrum of digital and hybrid services. However interoperability and time to market remain a challenge, with traditional and multiple types of blockchain-enabled digital market infrastructure being severely fragmented.

The team at GMEX group firmly believe that digital market infrastructure and related services need to integrate with existing market infrastructure and technologies to foster interoperability. By doing so there is an opportunity to interconnect the whole capital markets value chain of participants across international nodes (jurisdictions), to more easily trade, clear and settle traditional assets and digital assets and eradicate the age-old exchange silos.

The immense opportunities

As unfortunate as the current crisis is, it will end and immense opportunities will follow once normality resumes. There is expected to be exponential growth in digital assets over the next five years, with a continued uptick in institutional demand. This is not only a huge opportunity for FinTech firms, but also a big opportunity for financial markets firms and those that provide financial services.

To GMEX, this presents an opportunity where the right answer isn’t the traditional status quo and it isn’t the decentralised Wild West. The right answer is somewhere in between, and that presents an opportunity to create new products, new asset classes and new revenue streams.

The ability to harness hybrid market infrastructure will be essential in the capital markets sector, irrespective of whether the underlying asset class is traditional or digital. And to achieve the winning position, innovation now is key!

Spotlight

Cantor Fitzgerald

Cantor Fitzgerald is a leading global financial services firm, serving clients from over 30 offices around the world. Founded in 1945 as a securities brokerage and investment bank, the firm pioneered computer-based bond trading, built one of the broadest distribution networks in the industry and became the market’s premier dealer of government securities.

OTHER ARTICLES
CORE BANKING

Are Asian Nations All Set to Kick off CBDCs? Know Here!

Article | July 20, 2022

Contents 1. Say Hi to the Future 2. Digital Currencies: Types and Companies Involved 3. Why Are CBDC(S) Becoming The Talk of The Town? 4. Are Asian Nations Well On The CBDC Track? Say Hi to the Future! CBDCs, or Central Bank Digital Currencies, are the future of transaction modes and an excellent alternative to cash and private digital money. As the name suggests, CBDCs are digital tokens similar to cryptocurrencies, as both use blockchain technology. However, the significant difference lies in their modes of regulation. While cryptocurrencies are decentralized and highly volatile, CBDCs are regulated directly by a country’s central bank and, thus, are pretty transparent and stable for a financial system. Digital Currencies: Types and Companies Involved Cryptocurrency, Stablecoins, and Central Bank Digital Currencies (CBDC) are the three main digital currencies. Cryptocurrency grew in popularity because it was inexpensive and available in various currencies. Furthermore, its decentralized nature eliminated the role of banks in traditional money transfers, as they acted as intermediaries and thus charged for this. However, with the introduction of cryptocurrencies, the network members acted as intermediaries in the blockchain, and as such, the compensation got minimal. Here’s a list of the top cryptocurrency companies that offer enhanced data security: Advanced Micro Devices: It is an American multinational semiconductor company based in Santa Clara (California). It offers the best combination of CRU and GPU technologies to make faster and more secure blockchain transactions. Alpha Point Corporation: AlphaPoint is a white-label software company powering crypto exchanges worldwide. Its award-winning blockchain technology has helped over 150 clients in 35 countries discover and execute their blockchain strategies since 2013. Intel: By pushing forward in fields like AI, analytics, and cloud-to-edge technology, Intel’s work is at the heart of countless innovations. However, over time, stablecoins gained attention due to their stable nature. These are also cryptocurrencies backed by other cryptocurrencies, fiat currencies, commodities, etc. As suggested by its name, this backing system for stablecoins has been implemented to keep their prices steady and avoid fluctuations altogether. Some of the famous companies dealing in stablecoins include: Gemini: Gemini Trust Company, LLC is a next-generation cryptocurrency exchange and custodian that allows customers to buy, sell, stake, and store digital assets such as Bitcoin and Ether. OKCoin: It is one of the world’s largest and fastest-growing cryptocurrency exchanges. The company helps millions of people buy and sell Bitcoin, Ethereum, Miamicoin and many other crypto assets daily. ConsenSys: It is a leading Ethereum software company that enables developers, enterprises, and people worldwide to build next-generation applications, launch modern financial infrastructure, and access the decentralized web. Why Are CBDCs Becoming the Talk of the Town? Central Bank Digital Currencies are likely to gain much traction as they enable faster and smoother transactions, which are also very safe and secure. Since CBDCs do not involve holding a bank account, this concept will probably be more popular among non-banking individuals. With the recent collapsing examples of commercial banks, CBDCs have a higher chance of survival since the latter involve linking customers’ funds directly to the central bank. CBDCs also promise transparency, as all their transactions are recorded on a digital ledger, enabling authorities to detect fraud and other illicit activities. Are Asian Nations Well on the CBDC Track? Some CBDCs are in the pipeline, while the rest are at different stages of progress in many Asian nations, but none have launched yet! However, CBDCs are picking up steam in Asia. This region is home to many emerging markets that are quick to adapt to new technologies and keen to extract more benefits from innovations. CBDCs are mainly of two types, namely, Retail and Wholesale. While the former (CBDC-R) involves transactions by individuals and businesses, the latter (wCBDC) is more into institutional financial activities or transactions from one bank to another. Coming back to Asian countries and how they are doing with digital currency, one can design for both cases or just one, depending on the country's needs. For example, China and Thailand kicked off both models, while South Korea and Russia followed the CBDC-R model. As per a report from the Atlanta Council, Asian nations such as India, Japan, Indonesia, and Bhutan are at the development stage in both models. Similarly, Thailand and China are in the pilot phase of implementing both models. Meanwhile, nations in the development phase of implementing only the Retail CBDC include Iran, Israel, Lebanon, Turkey, and Cambodia. Besides, Saudi Arabia, UAE, Malaysia, and Singapore are in the pilot phase of the Wholesale CBDC. Meanwhile, nations in the research phase include Georgia, Kuwait, Palestine, Pakistan, and the Philippines. Nevertheless, North Korea is still in inactive mode.

Read More
PAYMENTS

Are Asian Nations All Set to Kick off CBDCs? Know Here!

Article | July 21, 2022

Say Hi to the Future! CBDCs, or Central Bank Digital Currencies, are the future of transaction modes and an excellent alternative to cash and private digital money. As the name suggests, CBDCs are digital tokens similar to cryptocurrencies, as both use blockchain technology. However, the significant difference lies in their modes of regulation. While cryptocurrencies are decentralized and highly volatile, CBDCs are regulated directly by a country’s central bank and, thus, are pretty transparent and stable for a financial system. Why Are CBDCs Becoming the Talk of the Town? Central Bank Digital Currencies are likely to gain much traction as they enable faster and smoother transactions, which are also very safe and secure. Since CBDCs do not involve holding a bank account, this concept will probably be more popular among non-banking individuals. With the recent collapsing examples of commercial banks, CBDCs have a higher chance of survival since the latter involve linking customers’ funds directly to the central bank. CBDCs also promise transparency, as all their transactions are recorded on a digital ledger, enabling authorities to detect fraud and other illicit activities. Are Asian Nations Well on the CBDC Track? Some CBDCs are in the pipeline, while the rest are at different stages of progress in many Asian nations, but none have launched yet! However, CBDCs are picking up steam in Asia. This region is home to many emerging markets that are quick to adapt to new technologies and keen to extract more benefits from innovations. CBDCs are mainly of two types, namely, Retail and Wholesale. While the former (CBDC-R) involves transactions by individuals and businesses, the latter (wCBDC) is more into institutional financial activities or transactions from one bank to another. Coming back to Asian countries and how they are doing with digital currency, one can design for both cases or just one, depending on the country's needs. For example, China and Thailand kicked off both models, while South Korea and Russia followed the CBDC-R model. As per a report from the Atlanta Council, Asian nations such as India, Japan, Indonesia, and Bhutan are at the development stage in both models. Similarly, Thailand and China are in the pilot phase of implementing both models. Meanwhile, nations in the development phase of implementing only the Retail CBDC include Iran, Israel, Lebanon, Turkey, and Cambodia. Besides, Saudi Arabia, UAE, Malaysia, and Singapore are in the pilot phase of the Wholesale CBDC. Meanwhile, nations in the research phase include Georgia, Kuwait, Palestine, Pakistan, and the Philippines. Nevertheless, North Korea is still in inactive mode.

Read More
CORE BANKING

Why Payments-as-a-Service is the first choice for FIs

Article | July 14, 2022

The pace of change within the global payment’s technology space is still at full speed with no sign of slowing down. While traditional incumbents have until recently taken comfort in their size and decades of dominance, new digital-only challenger banks are ramping up and making a huge impact on the global financial landscape.

Read More

BIG TECH IN FINANCE: A DEEP DIVE INTO THE FUTURE OF FINTECH

Article | February 10, 2020

The following article looks at Big Tech and its impact on the financial services sector. Whilst competition from small fintech startups will certainly take away some market share from traditional banks, the impact of “GAFA” could be huge. The fintech movement did more than unbundle banking and its core services — it spurred financial inclusion across Asia, increased overall economic growth, and made significant inroads into the finance value chain. The born-digital companies brought technology to the forefront, attacking the traditional risk-averse sector from various points — digital payments, insurance, P2P lending, and investment management, among other avenues.

Read More

Spotlight

Cantor Fitzgerald

Cantor Fitzgerald is a leading global financial services firm, serving clients from over 30 offices around the world. Founded in 1945 as a securities brokerage and investment bank, the firm pioneered computer-based bond trading, built one of the broadest distribution networks in the industry and became the market’s premier dealer of government securities.

Related News

INVESTMENT MANAGEMENT, SECURITY AND COMPLIANCE

The Kessler Group Reflects Growth, Changes Its Name to Onboard Partners!

Onboard Partners | January 09, 2023

The Kessler Group has changed its name to Onboard Partners. While the company preserves its 40-year history and extensive competence in financial markets, its new name reflects its growth! The rebranding aligns with the company's acquisition. The management team has joined forces with Stone Point Capital to acquire the company from ECN Capital, which purchased it in 2018. The new name represents the company's position not just as advisors and operators but also as partners who invest in the growth of their clients. Onboard Partners' qualitative component is to act as customers' trusted friends and navigators, generating opportunities and solutions that create significant, enduring value. By incorporating 'Partners' into its brand, the company communicates its shared dedication to its clients' success and its involvement in it. The star in the middle of the Onboard Partners logo is a navigational symbol. It shows how the company helps its customers find their way in many different ways. Waves of growth spread out from the star showcase how it affects its client partners and its ability to get accurate results. Onboard Partners helps businesses get new customers and keep making money by using three key platforms: Strategic Partnerships: Finding the right partners and making the best use of cobrand cards. Performance Marketing: Using its marketing skills and capital funding to speed up client growth on a pay-for-performance basis and giving credit unions, banks, and FinTechs access to card-as-a-service and program management. Portfolio Solutions: Advising on large portfolio transactions and sourcing and managing credit card and loan assets through its Fidem Financial subsidiary. Onboard Partners has increased what is feasible by a factor of over 6,000 through the formation of new partnerships, the provision of $1 billion in marketing funding on behalf of clients, the creation of millions of accounts, the brokerage of $100 billion in portfolios, and the acquisition of $5 billion in portfolios on behalf of investors. About Onboard Partners Onboard Partners helps corporate executives establish profitable and lasting solutions. The company's collaborations enhance performance and profit. It helps firms enhance client acquisition and lifetime value, build and manage consumer loan portfolios, and fund strategic initiatives.

Read More

INVESTMENT MANAGEMENT

Altera, Private Markets Investment Firm, Secures Growth Capital

Altera | July 27, 2022

Altera1, an Atlanta-based investment firm focused exclusively on the lower middle private markets, today announced the completion of a growth capital round. This investment provides Altera with balance sheet capital to further enhance its firmwide capabilities and growth initiatives. David Fershteyn, co-founder and CEO of Altera said, “We are pleased to close this strategic growth round and look forward to continuing to provide high net worth investors differentiated sources of return through our private market investment strategies.” David Fershteyn, co-founder and CEO of Altera said, “We are pleased to close this strategic growth round and look forward to continuing to provide high net worth investors differentiated sources of return through our private market investment strategies.” Since its founding in 2018, Altera has sponsored over 40 investment vehicles across private equity, real assets, and private credit. The company’s leadership expects to have $325M of capital committed to its private investment strategies by year’s end 2022 including $75M of capital from Altera’s owners. The firm’s trajectory seems on-trend to meet market demand. According to the 2022 Preqin Global Alternatives Report, the demand for private markets continues to grow and is expected to surpass $23T in overall assets by 2026. Mitch Reiner, Altera co-founder and Managing Partner of Capital Investment Advisors - an RIA with $4.2B in AUM (as of December 31, 2021) said, “High net worth investors have always had demand for private investments, but they have often lacked access to high-quality, institutional private funds. It is time investors who choose to allocate to alternative investments are able to do so with a cohesive strategy.” RIAs like Capital Investment Advisors can utilize Altera’s investment solutions to introduce private markets allocation to appropriate high net worth clients’ portfolios. Chris Dardaman, former CEO of multibillion-dollar RIA CI Brightworth Private Wealth and current Managing Director of Altera added, “Allocating investment assets to good, lower middle market private investments can produce greater diversification and stronger risk-adjusted returns than a public markets-only portfolio.” About Altera Altera is an investment firm focused on lower middle market private investments for high net worth individuals, family offices and RIAs. Altera’s investment solutions cover core private equity, real assets, and private credit. Altera’s investment team maintains relationships with hundreds of fund managers and independent sponsors seeking to deliver differentiated sources of return through a combination of multi-manager, single-manager, and direct deal investment offerings. For more information on Altera, visit www.alteraprivate.com.

Read More

FUNDING

Pivotal Capital Secures $55 Million in Funding Facilties

Pivotal Capital, Axis Auto Finance, Mitsubishi HC Capital Canada | July 08, 2022

Axis Auto Finance Inc. (“Axis” or the “Company”) (TSX: AXIS), a fintech lender servicing the alternative auto finance market, announced today that its wholly owned subsidiary, Pivotal Capital Corp. (“Pivotal”) has secured an additional Funding Facility (the “Facility”) with Mitsubishi HC Capital Canada, Inc. (“MHCCA”). Pivotal is an independent Canadian commercial equipment finance company active across the transportation, construction, manufacturing and food services sectors. The Facility adds to Pivotal’s existing funding relationships. Unique in the Canadian marketplace, Pivotal can lend across the credit spectrum with rates from investment grade to sub-prime. Facility highlights include a Purchase facility, with capacity of up to $50 million in annual purchases, and a Warehouse facility, with a limit of $5 million. The Facility will be used to finance and purchase the payment receivables generated from commercial finance contracts. “The addition of this Facility means that Pivotal has on balance sheet funding capacity in excess of $100 million. This will drive our aggressive growth plans for fiscal 2023 and continue our national expansion. This is the next step in becoming Canada’s largest independent equipment finance company,” said President Steven Koster. CEO Todd Hudson stated “Adding the $55 million in funding is an important strategic step for Pivotal. As Pivotal’s presence in the market grows, expanding our lending capabilities is crucial. This Facility will enable Pivotal to pursue even greater market share.” “We are proud to be part of Pivotal’s growth strategy,” said François Nantel, President Mitsubishi HC Capital Canada. “Pivotal is a significant player in the equipment finance industry and we believe this will be a mutually beneficial relationship.” About Pivotal Capital Pivotal is a wholly owned subsidiary of Axis Auto Finance (TSX: AXIS). With offices in Toronto, Montreal, Calgary and Vancouver, Pivotal is a national commercial equipment finance company, active across the transportation, construction, manufacturing and food services sectors. Further information on Pivotal can be found at https://www.pivotalcapitalcorp.com About Axis Auto Finance Axis is a financial technology company changing the way Canadians buy and finance used vehicles. Through our direct-to-consumer portal, DriveAxis.ca, customers can choose their next used vehicle, arrange financing, and get the car delivered to their home. In addition, the company continues to grow B2B non-prime auto loan originations by delivering innovative technology solutions and superior service to its Dealer Partner Network. All Axis auto loans report to Equifax, resulting in over 70% of customers seeing a significant improvement of their credit scores. Further information on the Company can be found at https://www.axisfinancegroup.com/investors-press-releases/. About Mitsubishi HC Capital Canada Mitsubishi HC Capital Canada is a specialty finance company that brings a consultative approach and expertise to customers of all sizes to help their businesses grow every day. Serving as a collaborative partner, we provide customized financing solutions for a wide range of industries, including manufacturing, construction, work trucks/transportation, IT, staffing, healthcare and clean technology/mobility.

Read More

INVESTMENT MANAGEMENT, SECURITY AND COMPLIANCE

The Kessler Group Reflects Growth, Changes Its Name to Onboard Partners!

Onboard Partners | January 09, 2023

The Kessler Group has changed its name to Onboard Partners. While the company preserves its 40-year history and extensive competence in financial markets, its new name reflects its growth! The rebranding aligns with the company's acquisition. The management team has joined forces with Stone Point Capital to acquire the company from ECN Capital, which purchased it in 2018. The new name represents the company's position not just as advisors and operators but also as partners who invest in the growth of their clients. Onboard Partners' qualitative component is to act as customers' trusted friends and navigators, generating opportunities and solutions that create significant, enduring value. By incorporating 'Partners' into its brand, the company communicates its shared dedication to its clients' success and its involvement in it. The star in the middle of the Onboard Partners logo is a navigational symbol. It shows how the company helps its customers find their way in many different ways. Waves of growth spread out from the star showcase how it affects its client partners and its ability to get accurate results. Onboard Partners helps businesses get new customers and keep making money by using three key platforms: Strategic Partnerships: Finding the right partners and making the best use of cobrand cards. Performance Marketing: Using its marketing skills and capital funding to speed up client growth on a pay-for-performance basis and giving credit unions, banks, and FinTechs access to card-as-a-service and program management. Portfolio Solutions: Advising on large portfolio transactions and sourcing and managing credit card and loan assets through its Fidem Financial subsidiary. Onboard Partners has increased what is feasible by a factor of over 6,000 through the formation of new partnerships, the provision of $1 billion in marketing funding on behalf of clients, the creation of millions of accounts, the brokerage of $100 billion in portfolios, and the acquisition of $5 billion in portfolios on behalf of investors. About Onboard Partners Onboard Partners helps corporate executives establish profitable and lasting solutions. The company's collaborations enhance performance and profit. It helps firms enhance client acquisition and lifetime value, build and manage consumer loan portfolios, and fund strategic initiatives.

Read More

INVESTMENT MANAGEMENT

Altera, Private Markets Investment Firm, Secures Growth Capital

Altera | July 27, 2022

Altera1, an Atlanta-based investment firm focused exclusively on the lower middle private markets, today announced the completion of a growth capital round. This investment provides Altera with balance sheet capital to further enhance its firmwide capabilities and growth initiatives. David Fershteyn, co-founder and CEO of Altera said, “We are pleased to close this strategic growth round and look forward to continuing to provide high net worth investors differentiated sources of return through our private market investment strategies.” David Fershteyn, co-founder and CEO of Altera said, “We are pleased to close this strategic growth round and look forward to continuing to provide high net worth investors differentiated sources of return through our private market investment strategies.” Since its founding in 2018, Altera has sponsored over 40 investment vehicles across private equity, real assets, and private credit. The company’s leadership expects to have $325M of capital committed to its private investment strategies by year’s end 2022 including $75M of capital from Altera’s owners. The firm’s trajectory seems on-trend to meet market demand. According to the 2022 Preqin Global Alternatives Report, the demand for private markets continues to grow and is expected to surpass $23T in overall assets by 2026. Mitch Reiner, Altera co-founder and Managing Partner of Capital Investment Advisors - an RIA with $4.2B in AUM (as of December 31, 2021) said, “High net worth investors have always had demand for private investments, but they have often lacked access to high-quality, institutional private funds. It is time investors who choose to allocate to alternative investments are able to do so with a cohesive strategy.” RIAs like Capital Investment Advisors can utilize Altera’s investment solutions to introduce private markets allocation to appropriate high net worth clients’ portfolios. Chris Dardaman, former CEO of multibillion-dollar RIA CI Brightworth Private Wealth and current Managing Director of Altera added, “Allocating investment assets to good, lower middle market private investments can produce greater diversification and stronger risk-adjusted returns than a public markets-only portfolio.” About Altera Altera is an investment firm focused on lower middle market private investments for high net worth individuals, family offices and RIAs. Altera’s investment solutions cover core private equity, real assets, and private credit. Altera’s investment team maintains relationships with hundreds of fund managers and independent sponsors seeking to deliver differentiated sources of return through a combination of multi-manager, single-manager, and direct deal investment offerings. For more information on Altera, visit www.alteraprivate.com.

Read More

FUNDING

Pivotal Capital Secures $55 Million in Funding Facilties

Pivotal Capital, Axis Auto Finance, Mitsubishi HC Capital Canada | July 08, 2022

Axis Auto Finance Inc. (“Axis” or the “Company”) (TSX: AXIS), a fintech lender servicing the alternative auto finance market, announced today that its wholly owned subsidiary, Pivotal Capital Corp. (“Pivotal”) has secured an additional Funding Facility (the “Facility”) with Mitsubishi HC Capital Canada, Inc. (“MHCCA”). Pivotal is an independent Canadian commercial equipment finance company active across the transportation, construction, manufacturing and food services sectors. The Facility adds to Pivotal’s existing funding relationships. Unique in the Canadian marketplace, Pivotal can lend across the credit spectrum with rates from investment grade to sub-prime. Facility highlights include a Purchase facility, with capacity of up to $50 million in annual purchases, and a Warehouse facility, with a limit of $5 million. The Facility will be used to finance and purchase the payment receivables generated from commercial finance contracts. “The addition of this Facility means that Pivotal has on balance sheet funding capacity in excess of $100 million. This will drive our aggressive growth plans for fiscal 2023 and continue our national expansion. This is the next step in becoming Canada’s largest independent equipment finance company,” said President Steven Koster. CEO Todd Hudson stated “Adding the $55 million in funding is an important strategic step for Pivotal. As Pivotal’s presence in the market grows, expanding our lending capabilities is crucial. This Facility will enable Pivotal to pursue even greater market share.” “We are proud to be part of Pivotal’s growth strategy,” said François Nantel, President Mitsubishi HC Capital Canada. “Pivotal is a significant player in the equipment finance industry and we believe this will be a mutually beneficial relationship.” About Pivotal Capital Pivotal is a wholly owned subsidiary of Axis Auto Finance (TSX: AXIS). With offices in Toronto, Montreal, Calgary and Vancouver, Pivotal is a national commercial equipment finance company, active across the transportation, construction, manufacturing and food services sectors. Further information on Pivotal can be found at https://www.pivotalcapitalcorp.com About Axis Auto Finance Axis is a financial technology company changing the way Canadians buy and finance used vehicles. Through our direct-to-consumer portal, DriveAxis.ca, customers can choose their next used vehicle, arrange financing, and get the car delivered to their home. In addition, the company continues to grow B2B non-prime auto loan originations by delivering innovative technology solutions and superior service to its Dealer Partner Network. All Axis auto loans report to Equifax, resulting in over 70% of customers seeing a significant improvement of their credit scores. Further information on the Company can be found at https://www.axisfinancegroup.com/investors-press-releases/. About Mitsubishi HC Capital Canada Mitsubishi HC Capital Canada is a specialty finance company that brings a consultative approach and expertise to customers of all sizes to help their businesses grow every day. Serving as a collaborative partner, we provide customized financing solutions for a wide range of industries, including manufacturing, construction, work trucks/transportation, IT, staffing, healthcare and clean technology/mobility.

Read More

Events