In this episode, we chat to Scott Levy, the CEO of Bedford Row Capital who is a non-bank originator that exists to serve a diverse range of firms who are unable to access the services of banks and want to raise finance in the debt capital markets. Scott has a background in financial services which includes asset-backed securities, securitisation, debt capital markets, structuring, Islamic finance, and asset management. We talk about current financing for mining companies and in particular, the royalty and streaming model that is becoming increasingly popular in the mining industry.
Bedford Row Capital´s primary function is to create access to finance using alternative sources. Over the last 15 years, vanilla investment banking has gone increasingly vanilla. A reluctance to invest in things that are not seen as totally ESG or green is making it increasingly difficult to secure capital for industries that need it. Since 2016, Bedford Row Capital has completed over 150 transactions, with most of the firms they arranged finance for being listed. It is the mid-tier transactions that need support. Streaming and royalty financing is used to fill the gap until you are ready for investors. For investors this form of finance is attractive, Scott explains why, in the podcast. It is in everyone’s interest to continue production, which keeps the cash flowing. Not enough people yet understand the royalty and streaming model. Miners who want to tap into this form of finance must be sensitive to the sensibilities of new investors.
BEST MOMENTS ‘We´re in very interesting times, at the moment. ´ ‘Merchant banking, at least in the UK, is virtually dead.’ ‘Royalty financing is a way to attract new investors into the sector.’
EPISODE RESOURCES Website: https://bedfordrowcapital.com/ LinkedIn: https://www.linkedin.com/company/bedford-row-capital-advisers/ Website: https://www.raptorcapitalstreaming.com/