Sector developments and company hires

First EGF guarantee inked
The EIB has approved €5.1bn of new financing to support investment by companies most impacted by Covid-19, alongside backing clean energy, water, sustainable transport and urban development. This includes up to €2.66bn of support – comprising €1bn of EIB-linked risk-sharing products and €1.66bn EIF guarantee and equity products - backed by the new European Guarantee Fund, which is expected to mobilise €11.33bn of total financing.

The EGF has begun its operational activity with the approval of a €162.5m uncapped guarantee to Banca Valsabbina, which aims to ensure that SMEs, larger corporations and the health sector can access finance through local financial partners across Europe.

Of the total EGF investment, 65% is earmarked for SMEs, while a maximum of 23% is earmarked for companies with 250 or more employees. Up to 5% of the financing can be allocated to public sector companies and entities active in the area of health or health-research or providing essential services related to the Covid pandemic, with a further 7% can be allocated to venture/growth capital and venture debt in support of SMEs and midcaps.

In other news…

CRE CRT upgraded
Scope has upgraded tranches B to F of Santander’s synthetic UK CRE CLO Red 2 Finance CLO 2018-1 and affirmed the triple-A rating of the A tranche. The rating agency notes that sequential amortisation, coupled with no realised portfolio losses have substantially increased credit enhancement since closing. However, it reports that as of July 2020, 42 exposures (accounting for £207.7m of the portfolio) are on Santander’s internal watch list, two of which (£36.5m) the bank considers to be non-performing.

EMEA
SYZ Capital has appointed Gian Kull principal, head of special situations and uncorrelated strategies. He has over a decade of experience investing in special situations, including distressed assets and litigation situations.

In his new role, Kull will not only be managing portfolios, but will also be spearheading the sourcing and execution of some of the firm’s private market investments. He reports to ceo Marc Syz and joins from Multiplicty Partners, where he focused on structured litigation investments. Previously, he was director of sourcing for VALTEGRA and launched the European office for Brigade Capital Management in Zurich.

Global
Värde Partners has promoted Jon Fox to the role of president and Andy Lenk to the role of deputy ceo. Fox is a partner and the head of the New York office, who joined the firm in 2013 and has led its global business development and investor relations team, fund and product development, and also oversees communications and public affairs. He is a member of the firm’s investment committee and senior leadership committee.

Lenk joined the firm in 2001 and is a partner in Minneapolis. As global head of strategy and portfolio operations, he works closely with the co-ceos on all aspects of firm strategy, finance, talent and operations. He is a member of the firm’s investment committee, senior leadership committee and the enterprise risk management committee.

Additionally, the firm has announced role changes within the areas of financial services, insurance and capital markets. Partner Elena Lieskovska will head a new dedicated insurance business after leading the financial services team and previously leading specialty finance investing in Europe.

Senior md Aneek Mamik will be promoted to global co-head of financial services from his current role leading those investments in North America and Asia. He will oversee the global team with partner Rick Noel.

London-based senior md and global head of capital markets Craig Rydqvist will join the financial services team to lead investments outside of North America, while md Missy Dolski will be promoted to global head of capital markets from her current role as head of capital markets for North America.

North America
Z Capital Group has hired Egidio Carlino as director and Jordan Shrem as senior associate. The two recruits are members of Z Capital Credit Partners' investment team.

Carlino is responsible for research and analysis of existing and prospective portfolio leveraged finance investments. He joins ZCG from DFG Investment Advisers, where he was an associate director, responsible for managing over US$5bn of leveraged loans.

Shrem is responsible for trade support and execution. He joins ZCG from CVC Credit Partners, where he was an associate, supporting trade execution and providing operational support to the credit team.