Wingate acquires significant interest of Fifo Capital
2 MARCH 2021: Leading Australian finance and investment house Wingate has announced it has acquired a significant equity interest in Fifo Capital Australia (Fifo), in a move that will increase the flow of credit to Australian SMEs and corporates as they seek to rebuild following the economic impact of COVID-19.
Fifo, with a track record of 13 years providing invoice, supply chain and trade finance solutions to over 3,000 Australian businesses, has been working closely with Wingate and its management team since the establishment of a joint venture in late 2019.
To date, the venture has introduced a further $50m of finance alongside Fifo’s $1.5bn to Australian SMEs and corporates and is set to eclipse the $2bn mark by 2023. Wingate’s significant acquisition will position Fifo as a pillar of the Wingate Group, complementing the Group’s existing suite of real estate, corporate and consumer debt offerings. In addition to the leading Wingate property and corporate debt businesses, Wingate Group incorporates consumer lender NOW FINANCE, and recently launched residential mortgage group ORDE Financial.
Managing Director of Wingate Corporate Investments, Kevin Wunsh, said tightened regulations in the banking system have created a significant opportunity for alternative finance providers to deliver debt capital solutions to Australian companies.
“The business finance market is in excess of $80bn, and our observations of the current landscape have shown there is a strong demand predicted for working capital solutions in a COVID-19 environment and beyond.
“These types of opportunities reflect the broader dynamic and demand we are seeing from both businesses and co-investors – our recently launched Corporate Credit Fund which provides corporate lending to businesses was over-subscribed by 140% and is now almost fully deployed.
“Our acquisition of Fifo will ensure that together, we have the products, funding and capability to capitalise on this market and provide a full suite of debt solutions.“
The CEO of Fifo Capital Australia, Wayne Morris, said Wingate’s investment would enable Fifo to rapidly grow and position itself as a key player in alternative working capital and cashflow finance.
“Having already been recognised as a lending innovator in 2019, we’ve always looked to develop the working capital and cashflow solutions that meet today’s business needs, and to deliver them in a no-nonsense way, through cutting-edge technology and processes.
“Now more than ever, there is a need for businesses to have access to the finance solutions needed to support them, and partnering with an investment house of the calibre of Wingate we are now able to further scale our market leading business and help more Australian businesses. ’
Mr Wunsh concluded:
“This acquisition presents a significant opportunity to support Australian businesses and create further diversification for our co-investors.”
“There is a strong alignment between our two brands, we are excited about the future growth prospects of Fifo and look forward to building the business as a pillar of the Wingate Group.”
Wingate is a leading Australian investment house focused on real estate, corporate and consumer debt. Our success is built on our ethical approach, deep capabilities in debt, and our capacity to inspire trust in our partners.