Receivables specialist Demica has hired François Terrade as its head of structuring, effective immediately, the firm said.
Terrade, formerly of GE Capital, will be responsible for creating financing solutions for Demica, a receivables business bought by three institutional investors in August last year.
Terrade will be based in London. He will act as a bridge between Demica’s origination team and the placement of debt with banks and non-bank lenders.
During his tenure at GE Capital, Terrade managed the business’s cross-border receivables transactions, Matt Wreford, chief executive officer of Demica, told PDI.
Commenting in a statement Wreford said: “François’s proven track-record of business development and of leading cross-border teams stands him in good stead for his new role at Demica as we expand to meet the financing demands of our clients. He will also ensure that Demica’s investors continue to benefit from the zero loss they have experienced on all Demica transactions since inception in 2002.”
Demica was acquired by three firms in August 2014: TOMS Capital, of which Noam Gottesman, formerly the co-founder of hedge fund manager GLG Partners, is the chief executive; 76 West Holdings, an investment group headed up by Eric Schwartz, formerly co-chief executive officer of Goldman Sachs Asset Management; and UK-based financial services private equity firm JRJ Group. Management at Demica also hold a stake in the business.
Since the acquisition, Demica has increased its origination team to four and has plans to grow further, Wreford said. The company facilitates the funding of $50 billion of trade receivables a year.
“The real opportunity for Demica lies in non-investment grade corporates. These are transactions that the banks typically no longer do but they are still very  high quality transactions,” he continued.
At present, there is around $3 billion in live transactions operated by banks on the platform. Another $1 billion is in the pipeline.
“We would imagine that about 60 percent of that will be funded by non-bank companies,” Wreford said.
Terrade said: “I am delighted to be joining Demica at this pivotal moment in the company’s development. Demica has a highly innovative business model; using technology and data to create tailored financing solutions for our clients, and I look forward to helping to build this business.”
Terrade was previously managing director, cross border receivables finance, GE Capital International and head of structured finance, GE Capital France.
Terrade led the large value and cross-border receivables transaction teams within Europe and led the creation of pan-European factoring transactions. He joined GE Capital in 2005 as head of capital markets and large corporates. Prior to that, he was at Société Générale, most recently as a director of debt capital markets – securitisation, responsible for arranging securitisation programmes for European, American and Asian corporates.