Investment Director, Financial Services Group - Structured Credit

Division: Financial Services Group

Location: United Kingdom, London

Employment Type: Permanent

Salary: Competitive

Closing Date: 29 October 2021

Investment Director, Financial Services Group - Structured Credit

Our mission

  • CDC is the UK’s development finance institution. Established in 1948 we invest in the most challenging markets of Africa and Asia with the aim of supporting economic development.
  • CDC has net assets of £6.4bn and a portfolio of £4.7 billion. In 2019 we committed over £1.66 billion of capital to business in Africa and Asia and are now invested in 1,200 businesses which directly employ over 875,000 workers and support many more.
  • CDC is a Public Limited Company and is wholly owned on behalf of the UK government by the Foreign, Commonwealth & Development Office (FCDO).
  • In the last few years, we have expanded our presence in Africa and Asia by opening new offices in Bangladesh, Egypt, Kenya, Myanmar, Nepal, Nigeria and Pakistan with additional locations opening soon.
  • At CDC, we take an entrepreneurial approach to investment. We think innovatively about ways to deploy our capital, attract and mobilise other investors, and drive transformational impact.
  • Primarily, CDC invests through direct equity, direct debt and funds products to achieve impact and a financial return which is reinvested into more businesses. We aim to create jobs and accelerate economic prosperity and focus on sectors that will do this; manufacturing, food and agriculture, infrastructure, financial institutions, construction, health and education.
  • CDC works with like-minded ambitious people who are primarily motivated by our mission to deliver impact. We are a growing team of over 485 and place immense value on diversity within our organisation.
  • Read more about us on our website cdcgroup.com

Team and role overview

  • The Structured Credit team was created in late 2019 and sits within CDC’s Financial Services Group which also includes FS Equity, FS Debt, FS Funds, Trade and Supply Chain Finance, & Investor Desk. CDC has a longstanding commitment to Financial Services (we have a portfolio of over $2bn invested in financial services across more than 150 investees which represents about one third of CDC’s total portfolio by value). Over the last three years, the team have deployed $1b+ across Africa and South Asia with a strong pipeline of additional investment opportunity. In 2020, the gross loan portfolio of our financial sector investments, converted to US dollars, stood at over $100 billion reaching over 120 million customers.

There are 6 levels in the Financial Services Group: PA, Associate, Executive, Manager, Director and MD. This role is expected to be a Director level role reporting to the Director and Team Head of Structured Credit.

Within the Financial Services Group, the Structured Credit team is responsible for originating and executing:

  • Structured credit transactions: using new credit vehicles, securitizations, CLOs, tranched structures, guarantees, etc. to channel capital into markets which CDC cannot adequately reach with existing products and/or to mobilise commercial investors into our markets
  • Risk-sharing facilities (RSFs): with partner banks, with the aim of enhancing access to credit for target segments (e.g. MFIs, SMEs)
  • Private credit funds (PCFs): broadening CDC’s fund investing capability to include private credit funds, primarily in Africa, to catalyse the growth of this nascent asset class – with a particular focus on mobilising commercial investors.

Purpose

The Director, reporting to the Head of Intermediated Credit, will be responsible for leading the origination, structuring, execution and portfolio management of Structured Credit transactions and RSFs. 

This will include leading all aspects of the Structured Credit and RSF strategy: researching target markets, developing relationships with potential clients/co-investors, meeting with potential partner banks/NBFIs/other intermediaries, assessing and prioritising new opportunities, undertaking credit analysis/due diligence, managing transactions through the investment committee process, negotiating transaction documentation with support from legal, portfolio monitoring activities and active engagement with relevant transaction support teams (Environmental and Social Responsibility, Business Integrity, Compliance and Development Impact).

The Director, working alongside CDC’s Chief Investment Office, is also expected to become the investment lead for Quantum, a new pool of catalytic capital (with more flexible risk-return appetite than CDC’s main balance sheet) focused on mobilising commercial investors through tranched structures.

Responsibilities

Transaction structuring and execution

  • Leading all aspects of Structured Credit and RSF transactions
  • Running the credit and operational analysis of the financial intermediary/ bank including due diligence on the origination processes, internal systems, track record, strategy etc
  • Screening and prioritising new opportunities
  • Preparing investment papers and presenting investment recommendations to CDC’s Investment Committee
  • Structuring and negotiating terms with clients to commercially acceptable standards, ensuring legal documentation that is best in class
  • Analysis and transaction modelling – including sector / market analysis, pricing, credit and macroeconomic analysis
  • Leading relationships with relevant transaction support teams including: Environmental and Social Responsibility, Business Integrity, Compliance and Development Impact

Portfolio management

  • Proactively managing relationships with existing counterparties
  • Monitoring and reporting on the financial performance, impact, compliance, ESG and any other issues that relate to existing investments / facilities
  • Responsibilities include: reviewing reporting information, monitoring compliance with covenants, flagging any potential credit issues, and preparing monitoring papers for review by CDC’s Investment Committee 

Research, strategy and business development

  • Refining the strategy for Structured Credit transactions and RSFs, and contributing to the broader strategy for Structured Credit
  • Co-leading strategy for Quantum – a new pool of catalytic capital focused on mobilising commercial investors through tranched structures. Leading the scale up of deployment through the identification and execution of the first Structured Credit transactions under the facility
  • Building relationships with banks, managers, corporates, other DFIs, other potential lenders/investors in CDC’s markets to ensure the Structured Credit team keeps abreast of relevant trends, transaction structures and proposals in our markets
  • Developing knowledge of debt products and structures being offered in CDC’s regions to assess where CDC can most effectively contribute particularly in mobilising capital from third parties
  • Leading the design and implementation of market scoping studies as relevant
  • Building relationships and liaising closely with relevant CDC teams including geographical and other Financial Services teams to share information and ensure a coordinated approach 

Deal team management

  • Managing and coaching more junior members of the team on transactions – including from the investment team and transaction support teams
  • Sharing knowledge and developing the skills of other team members

The candidate

Background

  • Extensive relevant credit/debt experience within a banking, fund, investment and/or DFI environment
  • Experience in negotiating and executing structured credit transactions in emerging markets (e.g. senior and tier 2 capital loans, bonds, securitisations, CDS, credit funds, guarantees, other tranched structured vehicles)
  • University degree in finance, economics, corporate finance accounting, or other relevant degree. CFA, ACA or MBA would be an additional advantage

Essential skills

  • Experience of building relationships with banks, NBFIs, fund managers, other intermediaries, investors and market participants in CDC’s geographies
  • Significant experience of working with investors to create tranched structures
  • Excellent knowledge of the financial institutions in CDC’s geographic region and understanding of the key issues they face
  • Excellent credit analysis, structuring and transaction execution skills
  • Team player who is collaborative and keeps other teams involved and informed of initiatives and strategies
  • Flexibility to work across a number of different transactions. Ability to work on multiple projects across products and sectors while working to deadlines and managing time effectively
  • Leadership and management skills
  • Strong analytical and research skills (including financial modelling)
  • Good report writing, business communication and presentation skills
  • Active interest in financing in developing countries and understanding of emerging market environments with a willingness to travel within Africa and South Asia
  • Candidates should be strongly motivated by CDC’s development mission and ideally demonstrate commitment to development or social goals through previous executive or non-executive activity

Desirable skills

  • Foreign language skills, particularly those spoken in CDC’s geographies (e.g. French, Portuguese, etc) would be an additional advantage

CDC’s Values

We look for colleagues who are

  • Impact-led and commercially rigorous
  • Tenacious in the face of challenges
  • Collaborative and caring

CDC is committed to diversity and inclusion and welcomes all applicants regardless of age, disability, gender reassignment, marriage and civil partnership, pregnancy and maternity, race, religion or belief, sex, sexual orientation or educational background.

Apply now