The investment of USD 250 million values Greensill at USD 1.64 billion, according to official statements made by both companies to The Wall Street Journal. General Atlantic is Greensill’s first institutional investor.
Founded in 2011, Greensill began as a supply-chain finance provider. Many companies pay suppliers 30, 60 or 90 days after purchase, which can create cash-flow problems for the suppliers. Greensill’s financing allows those suppliers to get their money early in exchange for a fee—usually lower than 1%. It later collects the full value of the invoice from the large company.
Greensill’s sources of capital include deposits in a bank it owns in Germany, the sale of bonds comprised of invoices it has purchased and bundled together, as well as four proprietary supply-chain finance funds managed by Credit Suisse Group AG and Global Asset Management Ltd. The lender said it posted an annual profit for the first time in 2017, logging earnings of USD 32.9 million on revenue of USD 115.9 million.
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