Target Company Overview

eFaktor is a rapidly growing independent company based in Poland that specializes in providing factoring services tailored for small and medium-sized enterprises (SMEs). Since its inception in 2015, eFaktor has demonstrated impressive growth, currently financing approximately PLN 1 billion of invoices annually. The company has successfully created a diverse customer base, thanks to its effective distribution strategies that utilize brokers, partners, and internal resources. Additionally, eFaktor boasts a solid risk management framework, which has enabled it to maintain a low default rate and uphold high portfolio quality. Presently, eFaktor employs around 40 skilled professionals dedicated to advancing the company’s mission.

Industry Overview in Poland

The factoring industry in Poland has been experiencing significant growth, driven by the increasing number of SMEs seeking alternative financing solutions. These businesses often face challenges when accessing traditional bank loans, prompting a greater reliance on factoring services as they require quick and flexible financial options. The popularity of factoring is further supported by the growing awareness among SMEs of the benefits it offers, including improved cash flow and reduced financial risk.

Moreover, the Polish startup ecosystem has been flourishing, leading to a rise in entrepreneurship and business innovation. With more SMEs entering the market, the demand for funding to facilitate growth and liquidity management is expected to increase. As a result, the factoring sector is poised for continued expansion, providing numerous opportunities for firms like eFaktor to thrive.

In addition, the competitive landscape fosters a dynamic environment for existing factoring service providers. The presence of new entrants and evolving technological advancements is pushing established players to enhance their service offerings. This trend allows companies to improve efficiency and cater to the specific needs of their clients, further solidifying the factoring service's market position.

Rationale Behind the Deal

The investment from Accession Capital Partners (ACP) serves as a critical step for eFaktor to escalate its growth trajectory. The deal comprises a warranted mezzanine loan, which provides flexibility in funding, along with an equity investment to reinforce the company's capital base. This financial support is aimed at expanding eFaktor's operations and reaching a larger client base while continuing to provide exceptional factoring solutions.

Piotr Gąsiorowski, President of the Management Board of eFaktor, expressed confidence in the partnership with ACP, highlighting their shared mission to assist entrepreneurs in accessing the funding necessary for their growth. By leveraging ACP's expertise in growth funding, eFaktor aspires to enhance its service capacity and continue supporting burgeoning businesses in managing their financial liquidity.

Investor Information

Accession Capital Partners (ACP) is a prominent investment firm actively investing through its fifth fund, AMC V SCA SICAV-RAIF, which successfully closed in June 2024 with commitments totaling €336 million. Since its establishment in 2000, ACP has maintained a strong presence in Central and Eastern Europe, with offices strategically located in Vienna, Warsaw, Bucharest, Budapest, and Prague. The firm has raised over €1.2 billion across five dedicated growth capital funds, backed by a range of institutional investors, including the European Investment Fund, the International Finance Corporation, and various banks and funds from Europe, the US, and Asia.

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This investment in eFaktor represents a strategic move by Accession Capital Partners, as the factoring market in Poland continues to escalate alongside the growth of SMEs. eFaktor’s solid track record, coupled with its strong risk management framework, positions it well to leverage the increasing demand for factoring services in the region. The expertise and financial backing of ACP not only provide eFaktor with the resources needed for expansion but also ensure that the company is well-equipped to tackle emerging challenges in the competitive landscape.

Furthermore, the partnership aligns with ACP's focus on supporting dynamic companies that display potential for growth and innovation. By investing in a company that addresses a crucial need within the SME sector, ACP is likely to see a favorable return on this investment as eFaktor scales its operations and continues to optimize its service offerings.

Overall, this deal appears to be a sound investment opportunity for ACP, enhancing its portfolio while also providing eFaktor with the necessary support to fulfill its growth ambitions. The collaboration between these two entities has the potential to yield significant benefits in the long run, making it a promising venture in the ever-evolving financial landscape.

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