Press release
Paris, 21 September 2023
ClubFunding Group, whose mission is to support real estate operators in France and Europe, is setting up a securitisation transaction with Citi that is unprecedented in France, in order to offer a new unitranche financing solution for real estate professionals.
With bank financing becoming increasingly scarce, this new solution, which is particularly aimed at medium-sized operations with an average financing amount of €3 million, is a key factor in accelerating investment in France. In fact, it reinforces ClubFunding Group's position as the European leader in short-term lending.
A unique solution to increase the number of financing solutions for real estate operators in France
In 2022, ClubFunding Group had already broken new ground by launching several financing solutions via funds or club deals to complement the Group's bond financing offering. In response to growing interest from property operators in the Group's credit facilities, the Group has teamed up with Citi to present a brand new financing solution that gives operators greater flexibility in their cash flow.
This transaction is part of ClubFunding Group's strategy to broaden its investor base to include institutional investors.
The benefits of securitisation are twofold: it provides unitranche financing at competitive rates, making it possible to finance an operation from a single source. It also allows funds to be made available immediately, which is crucial today for operators to seize property opportunities. The deal, worth up to €300 million, will initially be funded to the tune of €120 million.
Particular attention is being paid to selecting projects using ClubFunding's proven methodology, while adding portfolio diversification criteria and first-rank guarantees to secure the financing lines.
"We are constantly seeking to innovate by adapting our financing offer to meet the needs of property operators, explains David El Nouchi, Chairman of ClubFunding AM. This unitranche financing solution is particularly relevant today, as interest rates rise and bank loans become scarcer. We are delighted to have signed this agreement with Citi, one of the world's leading banking and financial groups, as part of the development of the ClubFunding Group."
About ClubFunding Group
ClubFunding Group is a diversified group specialising in financial services. Built on the solid foundations of a family business established in 1994, the Group was transformed in 2014 with the arrival of David Peronnin and the creation of ClubFunding. Very quickly, the company became the centre of gravity of a hyper-growth ecosystem. Today positioned in five business lines (real estate investments, bond issues, overseas investments, asset management, and debt collection and repurchase), the Group has raised more than €515 million in 2022.
In September 2022, ClubFunding Group raised an unprecedented €125 million from 4 investors (Florac Investissements, Peninsula Capital, EMZ Partners and Bpifrance), alongside the founders and management, who retain control of the Group.
The team is made up of over 200 employees spread evenly across 7 subsidiaries (ClubFunding, ClubFunding AM, CF Invest, CF Profina, CF Gestion, ClubFunding Patrimoine and CF2C).
About ClubFunding AM
ClubFunding AM is a portfolio management company authorised by the Autorité des Marchés Financiers under number GP-20000025. The management company offers innovative pooled investment and financing solutions for private and institutional investors. It currently manages 3 investment funds representing €180m of AuM under management.
Please note that the activities of ClubFunding AM are distinct from those of ClubFunding and that the conditions under which ClubFunding makes investments are not the same as those of ClubFunding AM.
About Citi
Citi is a premier banking partner for institutions with cross-border needs, a global leader in wealth management, and a valued personal bank in its home market of the United States.
Citi operates in nearly 160 countries and jurisdictions, offering businesses, governments, investors, institutions and individuals a broad range of financial products and services.
Press contacts
Maarc Agency for ClubFunding Group
Zakary Garaudet – zakary.garaudet@maarc.fr – 06 79 07 62 50
Jade Sychareun – jade.sychareun@maarc.fr – 06 99 66 13 83
Citi
Rekha Jogia-Soni - Rekha.JogiaSoni@citi.com
Seynaeve, Lars - lars.seynaeve@citi.com