Greensill Capital
 Greensill Capital    | |
|---|---|
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| Founder | Lex Greensill |
Greensill Capital was a financial services company based in the United Kingdom and Australia that focused on the provision of Supply Chain Financing and related services.
Greensill Capital was founded in 2011 by Lex Greensill and filed for insolvency protection on 8 March 2021.[1]
Contents
GFG Alliance
Until its insolvency, Greensill Capital, along with its German subsidiary Greensill Bank, had a significant exposure to GFG Alliance, a group of businesses associated with steel magnate Sanjeev Gupta. The exposure of Lex Greensill's firms to GFG Alliance totalled $5 billion. Conversely, GFG Alliance depended heavily on financing by Greensill Capital to conduct its operations. GFG Alliance relied especially on Greensill Capital's future accounts receivables finance program. According to the Financial Times, defaults by GFG Alliance are partly responsible for Greensill Capital's ultimate insolvency. On 8 March 2021, Bloomberg reported that GFG Alliance believed it would become insolvent if Greensill collapsed and had defaulted on some of its bonds.[2]
Insolvency
On 1 March 2021, Credit Suisse froze $10 billion in funds that were invested in Greensill's financial products and held by its supply-chain investment funds. According to the Financial Times, "Credit Suisse’s concerns about the funds came to a head because insurance policies covering defaults in a portion of its assets lapsed over the weekend." According to the Wall Street Journal, Credit Suisse was also concerned with Greensill's large exposure to companies tied to steel magnate Sanjeev Gupta.[3]
Mission
In August 2020, Greensill Capital's mission was described as making access to finance faster, cheaper and fairer:
Greensill makes access to finance faster, cheaper and fairer. Powered by financial technology but with deep expertise in credit management, we accelerate the movement of capital to where it is needed most, in the real economy. And through our vision of equal access to finance, we want to revolutionise the world of work, so no-one should have to wait to be paid. Greensill is the market-leading provider of working capital finance for businesses and people globally. Our more than 800 specialists worldwide have provided $143bn of financing in 2019 to more than 8m customers and suppliers in over 175 countries.[4]
References
- ↑ "Greensill Capital Tumbles Into Insolvency, Spreading Financial Pain"
- ↑ "GFG Set for Crunch Talks With Unions as Pressure Mounts on Gupta"
- ↑ "Greensill Used Credit Suisse Investment Funds to Lend to Its Own Backers"
- ↑ "Building a Financial Giant with Lex Greensill, Founder and CEO of Greensill Capital"
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