Journey
- Concept
- Structuring
- Validation
- Scale
- Institutional capital
Context
The partner
B2B credit fintech that finances purchases by small and mid-sized businesses from large brands, using data from the anchor companies to price risk.
The challenge: no initial funding available
Scaling origination required a dedicated vehicle, without relying on the fintech’s balance sheet.
Key decisions
Structure the partner’s FIDC from inception
Design the protections before investing
Require a significant junior subordinated quota below the mezzanine
First loss stays with the originator
Make new investments conditional on a loss break-even analysis
Grow only when pricing and losses support the structure
Structure
Flow
SME buyersOriginating fintechPartner’s FIDC
Capital structure
SeniorNew quotaholders · raise in progress
Mezzanine BUruk investment
Junior subordinatedFirst loss · partner
Protection mechanisms
- Granular portfolio
- Junior subordinated first-loss quota
What Uruk did
Build
Lead- Structuring of the FIDC
- Pricing based on anchor-company data
Capital
Lead- Investment in the mezzanine B quota, with conditional follow-on investments
- Right of first refusal over part of the subordinated quotas
Institutional traction
Lead- Preparing the vehicle for senior quotaholders
- Class structure ready for new quotaholders
Horizon
Grow the vehicle with pricing and loss discipline, broadening the quotaholder base.