Greensill Capital

Greensill primarily engages in supply chain finance, specifically in "reverse factoring", and derivative financial products. In traditional "factoring", a firm will sell the invoices it has issued to clients to a third party; the third party then collects the money owed from those clients.[1] In reverse factoring, a third party instead pays debts owed by a company to its suppliers at a slight discount, but much more quickly than the original company would have. The third party later receives payment from the company.[1]

Though banks have typically conducted supply chain financing,[2][3] regulation and capital restrictions targeting them have made such loans less profitable. This regulatory trend has in part led to the emergence of Greensill, and other, similar firms, such as Stenn International, as they do not face the same level of regulatory scrutiny.[3] Those in favor of reverse factoring say that it benefits suppliers, as it settles their debts more quickly. Those critical of the practice generally oppose it as it can allow companies to obscure debts.[4]

The firm was founded in 2011, with an initial focus on supply-chain finance. The company has since diversified its revenue streams, offering conventional banking services through a German subsidiary, the offering of bonds based on debt it has purchased, and through funds managed with partner organizations including Credit Suisse.[5]

American private equity firm General Atlantic invested $250 million in Greensill in 2018.[5] In 2018 Greensill was subject to extended media coverage and a call from British City grandee Lord Myners for formal investigation of the company’s involvement in scandal at Anglo-Swiss asset manager GAM.

In early 2019, Softbank invested $800 million in the company through its Vision Fund.[6] Due to the Softbank investment, the firm delayed considering other fundraising options such as an initial public offering.[6] By late 2020, the firm had begun pursuing other investors, aiming to raise between $500 and $600 million and to subsequently complete an IPO within two years.[7] In order to achieve its goal, the company agreed with an order by its board to sell all four of its planes, which included a Gulfstream 650.[7] In late 2020, Greensill began a search for a new auditor after growing too large for the firm's current auditor, Saffery Champness.[8] KPMG, Deloitte, members of the Big Four, and smaller accounting firm BDO all declined to become Greensill's new auditor.[8]