Ralco is a funding platform which serves banks by facilitating sustainable capital deployment to their strategic client base.

We do this by converting lending positions and opportunities into a capital efficient format to enhance bank returns and market share.

- We are primarily designed for bank loan distribution and risk transformation.
- We are a low-cost option which is remunerated for facilitating and servicing.
- We do not replace the bank-sponsor relationship, we support it.
- We facilitate bank capital recycling with option to convert to capital-efficient NIM product.
- We assist structuring and enable credit enhancement for individual and portfolio exposures.
- We ensure compliance with securitisation requirements.
- We are a relationship driven servicing partner.
- We ensure an active and transparent pass-through of information.
- Senior funding banks enjoy comprehensive control rights.

- Infrastructure debt offers a positive risk / reward profile that has low correlation to traditional credit asset classes.
- It represents a core part of a bank’s offering to sponsor clients.
- The public funding gap, decarbonization, digitalization and reshoring all support a significant growth trajectory.
- Direct lending by banks is capital intensive which restricts profit margins in the sector.
- Partnering with private capital funds can be challenging due to their gross return requirements.
- Ralco effectively acts as a low-cost clearing partner between:
  (A) sponsors or banks seeking to distribute or transform credit risk, and
  (B) banks seeking greater profitability and institutional capital sources.

- Bank lending capacity has been impacted by higher interest rates, increased regulation and constrained balance sheets.
- Banks need to protect capital ratios, manage profitability and maintain origination momentum without diluting underwriting discipline.
- Meanwhile, private credit funds can find it challenging to locate profitable investments which restricts back leverage opportunities.
- Ralco is embedded in traditional transaction flow, effectively acting as a low-cost clearing partner.
- Ralco uses senior secured and subordinated solutions that optimize capital usage by banks supported by junior capital.
- Ralco then provides sponsors with a single point of funding.
- A clearing platform that can deliver distribution capability and back leverage origination at scale.
- A pre-assembled capital recycling model resulting in improved RWA and ROE metrics.
- Strengthened sponsor client relationships with retention of ancillary wallet and league table credit.

- Direct monitoring, asset management and restructuring expertise applied throughout hold period.
- Comprehensive AML policies and procedures as required by Ralco’s registration with the Central Bank of Ireland.
- Active monitoring on covenant compliance with bespoke periodic investor reporting.
- Board comprising founders and CIO focused on strategy, capital allocation and oversight of risk.
- Credit, investment and risk committees focused on deal approvals, modifications and portfolio stress-testing.
- Valuation and audit committee focused on external valuation mandate, audit liaison and fair value methodology.
- Sector-specific guidance setting out expectations on investment parameters and deal terms with defined routes for exceptions.
- Alignment with bank market appetite to support credit decision, back leverage and exit liquidity analysis.
- Economic alignment with material fees diverted from Ralco during asset sub-performance.

RALCO