Cathay's Finance Active buys Verifino

The bolt-on was funded via an existing capex line that was negotiated with a group of banks when Cathay acquired a significant minority stake in Finance Active in Q1 this year, according to a person familiar with the situation. 

The GP invested in the business via its Small Cap 3 fund, which closed on €230m in 2017. The fund invests between €10-25m in growth transactions, and minority and majority buyouts.  

Lucht Probst Associates (LPA), a corporate founded in 1999 and based in Frankfurt, has also acquired a stake in Verifino. LPA offers advisory services and software products to help customers develop their capital markets business.

The deal is the first build-up carried out by the GP in Germany. Previously, Cathay invested only once in Germany, backing Medifa in July 2019, according to Unquote Data. The private equity firm established its German office in Munich in 2015.

The new Verifino company will regroup Finance Active and LPA to handle debt management activities for the German and Austrian markets respectively. Verifino is expected to benefit from Finance Active's experience in the management of financial products dedicated to the German public sector, and from LPA's software expertise in debt management for banks and public institutions.

Company
Debt Management specialist Verifino provides services for clients including loan and derivative portfolio analysis and an integrated platform service for loans. The service is used by municipalities, and small and medium-sized companies, as well as housing associations and other entities that manage a loan, investment or derivative portfolio.

The company is based in Frankfurt and generates a €2m turnover.

People
Finance Active – Jacques Descourtieux, Patrice Chatard (co-CEOs). 
Cathay Capital – Edouard Moinet (co-founder, managing partner).

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• Build-up