Investment Administration Services
Find out how we helped this private equity & venture capital business collect and process funds to complete an acquisition at speed.
YYX Capital Case Study
YYX Capital is an investment firm that founds, funds and acquires early-stage consumer-facing businesses. It also invests in businesses showing either growth potential or a need to be restructured and turned around. YYX’s team of leading executives will step in and operate businesses to unlock value others can’t.
YYX had an opportunity to acquire Mahabis, a major direct to consumer brand, out of administration. But the whole fundraise and transaction had to be turned around within a week. In addition, YYX had paid a non-refundable deposit on the Monday, so its capital was at stake if it couldn’t complete in time. YYX came to GC Partners to provide a client money account solution at very short notice.
The solution GC Partners provided included setting up a client account, performing KYC and AML checks on all investors and holding the money until the raise had been completed. GC Partners then had to pay across to the solicitors to complete the transaction.
GC Partners’ onboarding team had to work incredibly fast to set the account up in time, issue the bank details for investors to pay to, and onboard each investor to process their transaction by the scheduled complete date.
The solution provided to the client included:
- Two segregated client money bank accounts – one for investors to pay funds into and the other to hold only cleared funds (every payment was auto-swept to the cleared account once the application had been processed)
- YYX given access to GC Partner’s Investment Manager dashboard to upload all documentation of investors and their subscription forms
- An investor due diligence platform, including AML checks to validate every investor before their funds were processed
- Detailed reporting to show the live status of every investor and their payments, so the client could not only keep up to speed with all updates but also receive a live list of investors who needed to be contacted to improve the investor relations process
- Constant dialogue between GC Partners and YYX to ensure they knew in real-time any outstanding requirements.
GC Partners carried out all the work as the client required – swiftly, efficiently and to stringent requirements, without sacrificing quality. The transaction was completed on time and the company was bought out of administration.