How Avellinia Capital is optimizing its portfolio management with re:cap Institutional

Avellinia Capital is a private credit investment manager and was founded in 2017. The company specializes in secured, tailor-made, and flexible asset-based financing solutions for startups and growth companies within the innovation economy. Its capital is used to finance assets and contractual cash flows more efficiently.

The challenge for Avellinia Capital

Real-time insights into their portfolio companies’ cash flow

Avellinia Capital's investment strategy is rooted in data. "We strive to obtain real-time data whenever possible," explains Julian Schickel, Co-Founder and Managing Partner at Avellinia Capital.

They gather business data through APIs and, when necessary, consolidate information from Excel files. However, one crucial piece of the puzzle has always been missing: real-time transparency into their portfolio companies' cash position. This information is vital for maintaining an accurate and current view of Avellinia’s portfolio.

Limited access to live view of cash position

In some cases, they had read-only access, while in others, they relied on weekly or monthly reports or screenshots. However, this is far from ideal, as the data is delayed and prone to errors due to missing updates or incorrect figures.

“The more comprehensive our understanding, including live cash flows, the better. However, we are mindful not to be overly intrusive”, says Julian.

Constantly requesting account statements hinders the borrower-lender relationship. Ideally, these processes run seamlessly in the background. 

re:cap_Avellinia Capital
Julian Schickel, Co-Founder and Managing Partner at Avellinia Capital.

Get a holistic view of all things cash for both lender and borrower

Avellinia's goal was to achieve transparency and gain a holistic view of a company's finances without being overly intrusive. This approach enables them to foster trust with their portfolio companies while maintaining the data integrity vital for informed decisions. 

Whereas real-time cash transparency benefits both Avellinia and its portfolio companies. Avellinia gains valuable insights into the financial health of their investments, while portfolio companies gain a clear understanding of their own liquidity. This shared knowledge empowers both borrower and lender to make informed decisions that drive business.

The solution

Ready-to-use insights aggregated from live bank data

Lenders often struggle with finding portfolio management tools that truly understand their needs. This is where re:cap Institutional is different.

“With a solid background in financing, re:cap understands the pain points on the lender side, which was essential for us”, says Julian.

For Avellinia, integrating re:cap was a natural extension of their data-driven approach to portfolio management. “After a short time, re:cap’s software platform already supports various tasks in our daily operations,” states Julian.

These tasks include:

  • Regular and ad-hoc portfolio monitoring: gaining a better overview of portfolio performance.
  • Meeting preparation: reviewing key metrics in advance and during meetings with portfolio companies.
  • Information review and re-evaluation: quickly accessing and analyzing existing data.

Aggregate, analyze and intuitively summarize cash data

"re:cap provides additional, easily accessible data points that streamline our decision-making process,” Julian explains. For Avellinia, accessing live cash flow information, receiving alerts on unusual events, and observing trends is crucial.

"It's like a smart early warning system. We can see if something is off, investigate the cause, and find a solution together with the portfolio company”, he adds. 

Implementing re:cap Institutional was smooth thanks to the responsive and customer-focused team. Julian appreciated their solution-oriented approach and the open feedback loop.  He advises: “When exploring the product, provide honest feedback on what works and what doesn't. Get in touch with the re:cap team – they're highly responsive and open to discuss ideas.” 

“With re:cap Institutional, we have the live cash transparency we've been looking for,” says Julian.

“This not only provides us with a more holistic view of our portfolio but also allows us to maintain a trusting relationship with our portfolio companies by minimizing unnecessary intrusion.”

Read more about Avellinia Capital.

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