Innovative fund for PCI Groep

An innovative captive fund set up by NIBC for Dutch office supply company PCI Groep has attracted a EUR 10 million investment from insurer Delta Lloyd. This successful syndication transaction secures PCI’s long-term growth ambitions in a consolidating market environment.

NIBC developed the innovative structure for PCI in 2014 to finance its growth in a rapidly changing market where demand is shifting from printers and photocopiers to digital document solutions. What makes C-Fund PCI unique is that it is based on underlying client contract cash flows that serve as collateral for the financing, rather than assets such as machinery. The fund is independently managed by NL-Fund.

NIBC initially invested EUR 20 million in C-Fund. To help PCI acquire its industry peer Dantuma, we increased this to EUR 30 million in 2015, based on the inclusion of Dantuma’s contracts in the structure. C-Fund PCI has already financed some 5,000 contracts with over 2,200 companies, mainly SMEs.

Although this kind of financing is still fairly new to the Netherlands, it is used more often in the US and is expected to grow in popularity as an alternative way for companies to fund their ambitions. The entry of an institutional partner like Delta Lloyd underlines its success.