Experienced Investment Bankers buy Supply Chain Finance vendor Demica

I wrote a piece recently on Demica wondering why an industrial company like J.M. Huber would want to hold a supply chain finance technology company that was generally irrelevant to the rest of their business.  See Three core Supply Chain Finance solutions from Demica

With many in the private equity and investment banking world looking at supply chain finance and early pay opportunities, JRJ Group, TomsCapital and 76 West Holdings have partnered to acquire Demica Ltd., a leading provider of intelligent working capital solutions.

What I like about this deal is the backers understand credit, capital markets and banking, having come from Lehman Brothers, Goldmans, and a Hedge Fund. You can see some of their backgrounds here and here.  JRJ has been eyeing this space for some time and their portfolio already includes a number of platforms dealing in complex derivative and energy trading and clearing services.   TomsCapital is a hedge fund based in New York.

It is still early days, but I am sure these new investors will look to both leverage and broaden Demicas capabilities (Demica being mostly a European SCF vendor). What Philip Kerle, CEO of Demica, likes about this deal is that the buyers know what they are doing and have done their homework. Philip said its still early days, but can see Demica widening its footprint both geographically and with other receivables.

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