A bunch of former GE Capital executives is poised to complete a $7.5 million pre-IPO funding round for their specialist distribution financier, MitchCap.

Having left GE when it was sold its commercial distribution finance (CDF) unit to Wells Fargo in 2016, former GE Capital distribution GM Paul Mitchell founded MitchCap to plug the gap in the market for a non-bank distribution financier. He has since recruited the former head of GE’s CDF global business team, Andrew Stafferton, for the fintech’s board, along with former GE chief credit officer Craig Jones.

The new funding round was led by NAOS Asset Management - the first investment from its new private opportunities fund. Shaw and Partners managed the raise.

On top of the equity funding, MitchCap expanded its debt facility to $80 million through Longreach Credit Investors and another credit fund.

MitchCap has now funded $220 million of distribution transactions on an annualised basis - up 200 per cent on this time last year. It is forecasting to hit $280 million by June 30. It has a double-digit yield and has had no losses since its inception.

The business connects the key stakeholders in fragmented distribution channels - equipment manufacturers, distributors, resellers etc - via its platform, providing enhanced credit data and enabling better trading terms.

Its core industries are marine equipment, recreational vehicles and agriculture and commercial equipment distribution.

Mitchell said the new funds would enable the business to expand into new areas across Australia and New Zealand.

The company is targeting an IPO within 12 to 18 months.

Article source: AFR, 8 October 2021