Ernest Partners

📊 How is Private Debt Structured? Ready for the next post in our #PrivateDebt series? So far, we’ve covered what Private Debt is and why it’s growing. This week, we’re breaking down the structure of private debt. Stick with us next week as we explore how private debt works in the Benelux market! ➡️ Follow Ernest Partners to navigate the turbulent economic landscape and secure the right financing for your projects. Nicolas van Klinkenberg Sebastien D'Hondt Laurent Carlier Antoine Thiry

Insights from the EPRA Sustainability Summit 2024 in London Last Thursday, the EPRA (European Public Real Estate Association) Sustainability Summit offered valuable insights into the future of sustainable practices in the listed real estate sector. 💡 Simon Carter, CEO of British Land, highlighted that the listed real estate sector is leading the sustainable transformation, positioning it with a competitive advantage. Effectively executed green renovations – optimizing carbon savings per invested euro – are proving to be financially rewarding, especially with the strong demand for sustainable building from potential tenants. 💡 Chris Kane stressed the importance of rethinking traditional models, especially in times of uncertainty. He emphasized tracking technological shifts, understanding their impact on the work environment, and prioritizing customer and user needs. The summit featured several engaging panel discussions, with topics on: ➡️ 𝗧𝗵𝗲 𝗶𝗺𝗽𝗮𝗰𝘁 𝗼𝗳 𝘀𝘂𝘀𝘁𝗮𝗶𝗻𝗮𝗯𝗶𝗹𝗶𝘁𝘆 𝗼𝗻 𝗽𝗿𝗼𝗽𝗲𝗿𝘁𝘆 𝘃𝗮𝗹𝘂𝗮𝘁𝗶𝗼𝗻: Exploring the “green premium” vs. the “brown discount”, and the financial risks of inaction. ➡️ 𝗛𝗮𝗿𝗺𝗼𝗻𝗶𝘇𝗮𝘁𝗶𝗼𝗻 𝗼𝗳 𝗿𝗲𝗽𝗼𝗿𝘁𝗶𝗻𝗴 𝗮𝗻𝗱 𝗱𝗲𝗳𝗶𝗻𝗶𝘁𝗶𝗼𝗻𝘀: Moving beyond the environmental dimension to include biodiversity, social impacts, and the influence of residential developments on communities. Thank you to EPRA for an insightful summit! At Ernest Partners, we remain at the forefront of ESG developments, ready to support your company’s financing needs in this evolving landscape. Dominique Moerenhout Hassan Sabir Barney Coleman Laurent Carlier Nicolas van Klinkenberg Sebastien D'Hondt #ESG #EPRA

📈 Why is Private Debt on the rise? Ernest Partners is in Netflix mode! 🎬 In our first post of the #PrivateDebt series, we introduced what private debt is and why it’s reshaping the financing landscape. Today, we’re diving into the key drivers behind its growth – from rising bank regulations to asset diversification. Stay tuned as we explore private debt structures, regional insights, and the benefits for both borrowers and investors! Nicolas van Klinkenberg Sebastien D'Hondt Laurent Carlier Antoine Thiry

💡Wondering why Private Debt is becoming the go-to choice for growth financing? In this post, we break down what #PrivateDebt is, how it works, and why it’s a game-changer outside traditional banking. ➡ Follow along in the coming weeks as we explore how private debt is growing in the financial landscape!

🌍 Committed to Climate Action! 🌍   We were thrilled to host a Climate Fresk in our offices ─ a collaborative, interactive workshop designed to deepen our understanding of climate challenges! A big thank you to Julien Descampe for leading this inspiring session and guiding our teams through an active and insightful brainstorming experience.   This team-building event ensured our teams are now well-aligned and better informed about the climate situation. The final phase allowed us to share initiatives and set future goals for improvement, making this a truly enriching group experience. The workshop also perfectly aligns with our internal #MobilityChallenge, where we encourage our team to embrace active, eco-friendly mobility options ─ moving more, staying healthy, and reducing our environmental footprint. 🚴♂️🚶♀️   On this occasion, we also reaffirmed our commitment to supporting clients in establishing green financing solutions. Nicolas van Klinkenberg Laurent Carlier Elisa Renard Peter Frijns Antoine Thiry Sebastien D'Hondt Dennis Dendas

🚀 Exciting news: Welcoming Gerro Goedhuis as Associate Partner at Ernest Partners! We’re thrilled to announce that Gerro Goedhuis has joined us as an Associate Partner, bringing nearly 30 years of corporate banking experience, with a career spanning international loan markets. 🔹 At ING, Gerro led corporate syndicated loan activities in Western Europe, growing the franchise to one of the region’s top syndicated loan houses. 🔹 He managed relationships with ING’s largest and most strategic clients. 🔹 Since early 2023, he has thrived as an independent debt advisor, guiding clients through syndicated financing, corporate acquisitions, and refinancing. We’ve already had the pleasure of working together on several transactions and are excited to continue achieving great things. Gerro’s deep understanding of market dynamics, lender behavior, and unwavering commitment to clients’ success will further strengthen our senior debt advisory team. Gerro shared his thoughts on joining the team: "𝘏𝘢𝘷𝘪𝘯𝘨 𝘸𝘰𝘳𝘬𝘦𝘥 𝘤𝘭𝘰𝘴𝘦𝘭𝘺 𝘸𝘪𝘵𝘩 𝘵𝘩𝘦 𝘌𝘳𝘯𝘦𝘴𝘵 𝘗𝘢𝘳𝘵𝘯𝘦𝘳𝘴 𝘵𝘦𝘢𝘮 𝘰𝘯 𝘮𝘶𝘭𝘵𝘪𝘱𝘭𝘦 𝘥𝘦𝘢𝘭𝘴, 𝘐’𝘷𝘦 𝘤𝘰𝘮𝘦 𝘵𝘰 𝘢𝘥𝘮𝘪𝘳𝘦 𝘵𝘩𝘦𝘪𝘳 𝘤𝘰𝘭𝘭𝘦𝘤𝘵𝘪𝘷𝘦 𝘬𝘯𝘰𝘸𝘭𝘦𝘥𝘨𝘦, 𝘥𝘪𝘷𝘦𝘳𝘴𝘪𝘵𝘺 𝘰𝘧 𝘣𝘢𝘤𝘬𝘨𝘳𝘰𝘶𝘯𝘥𝘴, 𝘢𝘯𝘥 𝘵𝘩𝘦𝘪𝘳 𝘢𝘣𝘪𝘭𝘪𝘵𝘺 𝘵𝘰 𝘤𝘰𝘮𝘣𝘪𝘯𝘦 𝘳𝘪𝘤𝘩 𝘦𝘹𝘱𝘦𝘳𝘪𝘦𝘯𝘤𝘦𝘴 𝘸𝘪𝘵𝘩 𝘦𝘯𝘵𝘩𝘶𝘴𝘪𝘢𝘴𝘮 𝘢𝘯𝘥 𝘴𝘵𝘳𝘰𝘯𝘨 𝘷𝘢𝘭𝘶𝘦𝘴. 𝘐’𝘮 𝘭𝘰𝘰𝘬𝘪𝘯𝘨 𝘧𝘰𝘳𝘸𝘢𝘳𝘥 𝘵𝘰 𝘤𝘰𝘯𝘵𝘳𝘪𝘣𝘶𝘵𝘪𝘯𝘨 𝘵𝘰 𝘰𝘶𝘳 𝘴𝘩𝘢𝘳𝘦𝘥 𝘴𝘶𝘤𝘤𝘦𝘴𝘴 𝘢𝘯𝘥 𝘧𝘶𝘳𝘵𝘩𝘦𝘳 𝘨𝘳𝘰𝘸𝘪𝘯𝘨 𝘰𝘶𝘳 𝘱𝘳𝘦𝘴𝘦𝘯𝘤𝘦 𝘪𝘯 𝘵𝘩𝘦 𝘉𝘦𝘭𝘨𝘪𝘢𝘯 𝘮𝘢𝘳𝘬𝘦𝘵." Welcome to the team, Gerro! 🎉 #CorporateBanking #DebtAdvisory #SyndicatedLoans #ErnestPartners #Growth #Team Nicolas van Klinkenberg Laurent Carlier Sebastien D'Hondt

📊 An interesting analysis from CBRE Research highlights the correlation between long-term interest rates and real estate cap rates. But don’t overlook factors like risk perception and rent trends - they are important as well and will impact the anticipated drop in real estate cap rates over the coming months. At Ernest Partners, we’re here to help you navigate the turbulent economic landscape and secure the right financing for your projects. Let’s discuss how to move your financing strategy forward! 🔗 Read the full CBRE article via the link in the comments. #Finance #Investing #InterestRates #RiskManagement #CapRates Laurent Carlier Nicolas van Klinkenberg Sebastien D'Hondt

Is Payment-in-Kind (PIK) a Shortcut or a Smart Move? 💡 With interest rates at high levels, more businesses are turning to Payment-in-Kind (PIK) loans to manage rising costs. Instead of paying interest in cash, PIK makes it possible to (partly) postpone the payment of interest by integrating them into the principal – buying yourself some breathing room. Smart move? Well, maybe. While PIK can provide short-term relief, it adds to the overall debt load. And let’s not forget – those higher interest rates still need to be paid. However, PIK isn’t always a red flag. Some funds use PIK as a growth strategy, enabling financially strong companies to free up cash for growth initiatives. 📈 The challenge for investors? Figuring out if PIK is a sign of trouble or a calculated move for future growth. As interest rates remain relatively high, understanding debt strategies is key for those navigating the credit market. 💬 Interested in discussing your financing strategy? Feel free to contact us! Laurent Carlier Antoine Thiry #Ernest #PIK #financingstrategy #debtstrategies #interest Image source: Financial Times, https://lnkd.in/erGdqfSV

Interest rates, growth and inflation in Europe 🏤 💶 Eurozone has over the last decades been structurally better at keeping inflation in check. But that may simply be the result of lower growth. . The economic structure of the euro zone — which forced Mario Draghi at ECB to promise to do “whatever it takes” to save the currency from its sovereign debt crisis 12 years ago — is in question again. France’s political problems persist.  As you can see below the spread between OAT and bund shows greatest concerns over the Eurozone since 2012 ! 😬 . Not a healthy environment for businesses. Managing a strong liquidity for your company is more important than ever.

Could this be the start of a new tradition? 💡   Yesterday, we hosted a training session at Febelfin Academy, diving into the details of Credit Risk Management in banks. Originally designed for our own team, we quickly realized it was too valuable not to share with our partners and clients. We had the pleasure of welcoming participants from Tikehau Capital, PMV, Winwinner, Wereldhave, and of course, our own team members.   Turns out, we weren’t the only ones excited! Judging by the feedback, the session really resonated with everyone. Plans are already in motion for the next edition in early 2025. 📅 Interested in joining an Ernest Partners learning session? Send us a PM or email, and we’ll be happy to share the details.   Many thanks to Febelfin Academy for hosting us, and to Christophe Cieters for guiding us through the fascinating world of Credit Risk Management!   Niel Wijns Pepijn Wuytack Isaak Boone Nicolas van Klinkenberg Elisa Renard Peter Frijns Dennis Dendas Antoine Thiry Stig Van Peer Sam van Baarle Laurent Trenson Laurent Carlier #CreditRiskManagement #Ernestpartners #trainingsession