Blackstone’s New Acquisition in 2020

Let’s discuss Blackstone’s new acquisition in 2020. Acquisitions have been a part and parcel of Blackstone’s group. Being the topmost financial service provider, acquiring companies that will help it to expand across the globe and get global visibility is the objective. Thus in 2020 Blackstone acquired Global Supply Chain Finance Ltd. Global Supply Chain Finance Ltd (GSCF) is a Swiss company specialized in servicing Supply Chain Finance (SCF) programs with the use of a highly advanced processing platform. GSCF is headquartered in Zug, Switzerland.

Alternative Distribution Financing Ltd. (ADF)-its financing arm is a subsidiary company focused on financing & providing a single-source solution for companies seeking all-inclusive Supply Chain Financing services.

Blackstone’s new acquisition in 2020

Table of Contents

Key highlights

29 years old company
Global coverage
Highly specialized service provider
A tool like GIS (GSCF Information System) & FAST (Financial Analysis and Spreading tool) – gives statistics relating to partners’ financial performance & trends for volumes, payment behavior

Services provided

Receivables Financing

AR Financing programs involve an originating Company (Vendor) and its Partners (Buyers). These programs can be financed by a third-party Funder and might include Credit Insurance coverage.

It includes below 3 types of financings

Distribution Financing
Factoring
Receivables Servicing

Payables Financing

Funder pays the Supplier on behalf of the Company earlier whereas the Company gets the extended payment terms & pays the Funder total invoice amount plus a program fee at the agreed maturity date.

Types of Services

	Distribution Financing	Factoring	Receivables Servicing
Parties involved	Company, Funder, Partners, GSCF	Company, Funder, Selected Partners, GSCF	Company, Partners & GSCF
Nature of transactions	The company sells receivables to the funder & collects them earlier, partners in return gets extended payment terms, paying the funder upon maturity date	The company sells the receivables related to a portfolio of selective Partners to a Funder, which accelerates the collection to the company at a discount. Partners may or may not be aware of this arrangement	GSCF owns the end to end administration of trade receivables of a Company, including invoices, reconciliation of partner payments, dilution tracking, credit analysis, rating, and monitoring of partners performance
Suitable for	Companies with high-volume sales, looking to grow sales while maximizing liquidity	Companies with high-volume sales with a portfolio of credit-worthy partners, seeking attractive short-term financing and an enhanced Balance Sheet.	Companies with sizeable open-account trade receivables looking to streamline credit and collections tasks and enhance risk management.
Agreements signed	Company and funder execute a Receivables Purchase Agreement (RPA) and the partners sign a Payment Agreement	Company and funder execute a Receivables Purchase Agreement (RPA)	Agreement between the Company & GSCF for outsourcing all credit and collections tasks

Thus Blackstone’s new acquisition in 2020 will go a long way in increasing its resources and earning potential.

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FunFact

This acquisition of Blackstone will help in expanding its factoring business by leveraging the GSCF platform used and will help the working capital solutions program to grow globally.