FAQ

  • Private credit offers higher interest rates for the same credit risk versus public markets.
  • There is a diverse range of sectors in private credit, bearing different risks and paying different levels of interest.
  • Actors in private credit may be regulated or not. Loan books built by banks are subject to bank regulatory oversight, compliance, stress testing and capital provisioning. We term this regulated lending where we expect higher levels of professionalism and integrity.
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  • CTLF invests in regulated private credit alongside Silicon Valley Bank’s proprietary capital.
  • SVB have the broadest and furthest reach into the tech industry which generates more loan origination flow and unrivalled lending opportunities. They are the dominant bank in tech.
  • No other product currently gives access to this partnership.
  • It produces a large amount of tangible yield, for distribution or accumulation.
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  • Traditional Banks target their services to the old economy with hard assets and prefer not to lend to dynamic and fast evolving businesses such as those found in the tech sector.
  • SVB have targeted these businesses since it was founded in 1982 and over the last 40 years have become the ‘go to’ bank for every business in the innovation economy.
  • SVB has built its franchise on knowledgeable, sympathetic, fast and efficient interaction, ensuring easy access to lending officers and fast turnaround of proposals.
  • The result is they have made themselves the #1 call for banking services for any tech business.
  • Other banks would like to compete due to the profitability and opportunity. Each has realised the barrier to entry is very high where brand and scale is not sufficient.

  • Building a banking brand and customer base in Europe is their regional focus and priority. SVB has no plans to offer asset management services to institutions in Europe.
  • Working with partners to bring unique products to the marketplace increases awareness of their name and creates an attractive synergy extending into areas beyond their core focus.

  • No, high yield does not automatically mean high risk. With a shortage of capital to lend and a tech sector that is growing fast in so many new directions, the excess of demand over supply allows the yield premium and this inefficiency will likely to persist for years to come.
  • The essential contrast is between old economy hard asset lending and new economy soft asset lending. Instinctively lenders gravitate towards visible tangible hard assets because they seem easy to understand and value. Lending rates are consequently very low as capital has competed to lend. New economy lending continues to be the domain of specialists with different lending processes adapted to handle new economy business models.

  • No. CTLF may only invest in new loans generated by Silicon Valley Bank’s loan origination team. They can never buy an old loan from SVB.
  • A legal agreement exists to ensure that CTLF will see 100% of the term sheets generated by SVB’s loan origination team and have the right to invest in any they choose.

  • Yes, CTLF will be managed to comply with Article 8 of SFDR.
  • Championing businesses in the innovation economy presents a unique opportunity to accelerate the global transition to a more equitable and sustainable world.