Gothia Financial Group

In early 2005, Proventus provided a subordinated loan to Gothia Financial Group, a Swedish financing company specializing in buying portfolios of defaulted consumer debt and collecting for its own books. The family-owned company wanted to continue aggressive expansion without external equity investors. Proventus provided a five-year term loan of SEK 50 millions. The loan was subordinated to all other debt, and secured only by an extensive package of financial covenants. In connection to Gothia Financial Group being acquired by B2 Holding ASA in August 2006, the Proventus loan was repaid according to the terms of the loan agreement.

Proventus is moving to meet what we believe to be an important, unfilled need among mid-size European companies that want to initiate expansion or restructuring, but are either unable to acquire bank financing or unwilling to dilute current ownership to fund such initiatives.

In the future we intend to increase our investments in this area.