Fost | Investment Framework
Investment Framework
Fost arranges facilities for companies with financing needs in growth or consolidation phases. We base our approach on the nature, granularity and liquidity of the underlying assets.
1 – Who we finance
SMEs and growth-stage companies
Companies we finance are (i) SMEs with a profitable business model, looking to secure additional resources leveraging their asset base and (ii) growth companies with an established commercial traction, scaling into large markets, with breakeven reached or to be reached.
What we look for
Positioned on B2B markets or fast-growing financial segments
Growing and granular asset base
Where we invest
Across continental Europe, with a particular focus on France, our home market.
2 – What we finance
Non-dilutive funding needs
The needs we fund
Working capital needs
Working capital becomes the binding constraint on growth long before demand does. We pre-finance that book so it stops being a brake.
Growth-related funding needs
Beyond specific assets, we finance the broader push of a growing business: new markets, product development, targeted capex.
3 – How we structure financing
Dedicated structures around the collateral
How a transaction is built
Instruments
Secured bonds, senior or junior-backed, frequently issued through a dedicated, ring-fenced vehicle so the collateral sits apart from the operating company.
Sizing
Loan-to-value based, where over-collateralisation is built in as a safety buffer.
Maturities
Short and mid-term, 24 to 36 months, so facilities stay close to the lifecycle of the underlying.
Security package
Bespoke, tailored to each jurisdiction.
- Full assignment of eligible receivables and assets
- First-ranking pledge of collection accounts
- Fiducie-sûreté and trust schemes
- Minimum cash reserve
- Other guarantees where applicable
Covenants and monitoring
Covenants and undertakings are coupled with reporting requirements, to ensure full transparency.
- Collateral performance monitored live through a dedicated platform