Bridging the funding gap

The London Stock Exchange Group (LSEG) reports the launch of ELITE Club Deal (ECD), a new online private placement platform for ELITE companies and professional investors. It says the initiative will help to bridge a funding gap by bringing together professional investors with high growth companies in a secure and efficient environment through an online platform.

To access new private growth capital using the platform, be that equity or debt funding, ELITE companies will require the support of “ELITE Partners,” such as banks, financial advisors, lawyers and auditors to help them prepare and upload required corporate documentation to the platform. All company documentation will be presented in a standardised format, further streamlining the investment process for participants.

“Cornerstone Investors,” including institutional investors, private equity and venture capital firms, will be given the opportunity to access company data and negotiate deal terms as lead investors on the platform in a fully compliant environment. These financings will later be made available to “Follow-on Investors.” “Agents,” typically corporate brokers and banks will facilitate introductions between companies and investors.

Luca Peyrano, CEO, ELITE, said: “ELITE Club Deal provides ELITE companies, which are typically high growth businesses, with access to a broad group of international investors. ECD bridges the gap between the supply and demand of capital in a new way, allowing professional investors to have a stake in some of Europe’s fastest growing private businesses. For companies, ECD is a one-stop-shop, giving them access to a host of institutions in a secure environment, ultimately allowing them to finance their growth and in turn drive job creation and innovation across Europe and beyond.”

Since 2012, ELITE has supported more than 400 fast growing businesses prepare and structure for the next stage of growth, guiding them on how best to access the most suitable funding for their needs. ELITE Club Deal is the natural next step in the evolution of ELITE’s suite of business support services.

Pilot phase testing with five European ELITE companies will begin shortly, with a full go-live planned for late 2016, subject to regulatory approval.