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Category: Connected Capital Blog

  • From Revolver Strain to Strategic Flexibility: How Growth Corporates Unlock Liquidity

    From Revolver Strain to Strategic Flexibility: How Growth Corporates Unlock Liquidity

    PE-backed growth companies face a constant balancing act. On one hand, sponsors demand aggressive expansion; on the other, lenders watch leverage and liquidity closely. Too often, CFOs and treasurers are forced to use their revolver for routine working capital needs—when that facility should be reserved for strategic initiatives or true emergencies.


    That’s where alternative capital solutions come in. By unlocking liquidity trapped in receivables and payables, finance leaders can take pressure off their revolvers, maintain sponsor confidence, and keep capital available for growth or M&A activity.

    The Revolver Pressure Problem
    Consider a mid-sized telecom company scaling digital services while investing in IT infrastructure. Despite strong growth, day-to-day liquidity needs forced repeated revolver draws, triggering concerns from its lenders. By introducing a receivables financing program, the company freed up liquidity without touching the revolver, preserving borrowing capacity for expansion.
    In another case, a packaging manufacturer growing in pet food faced earnings volatility after a customer bankruptcy. Alternative capital solutions allowed the CFO to fund M&A activity without leaning on the revolver, improving optics with both sponsors and creditors.

    Growth Without Revolver Dependency
    A European industrial group recently implemented a payables finance program across divisions, creating liquidity to fund transformation initiatives while keeping its revolver fully available. This not only improved the company’s balance sheet optics but also reassured lenders ahead of a potential exit event.

    Meanwhile, a global packaging firm carrying high leverage had access to an unused ABL facility, but its rigid terms offered little flexibility. By shifting to an alternative capital program, the CFO unlocked faster, more flexible working capital while maintaining revolver headroom for larger, strategic needs.

    Strategic Growth Requires Strategic Capital
    From tech acquisitions to supply chain expansions, strategic moves require working capital that can be deployed quickly and flexibly. Alternative capital makes this possible by funding growth through receivables and payables programs, not revolver draws – strengthening balance sheet optics and preserving sponsor confidence.

    Why Now?

    • Economic and geopolitical uncertainty, volatile supply chains and postponed IPOs all make traditional financing less reliable. The Office of the CFO needs solutions that are:
    • Resilient: Liquidity that flexes with growth cycles
    • Responsive: Working capital that deploys quickly when opportunities arise
    • Non-dilutive: Funding that avoids tapping the revolver or adding leverage

    Swap Revolver Strain for Alternative Capital
    If your company is relying on revolver draws to fund working capital, it’s time to explore GSCF’s alternative capital solutions. These solutions unlock liquidity, preserve borrowing capacity, and give CFOs and treasurers the flexibility to grow on their terms.rnative capital solutions. These solutions unlock liquidity, preserve borrowing capacity, and give CFOs and treasurers the flexibility to grow on their terms.

  • The Office of the CFO’s Top 10 Checklist for Simplifying Working Capital Complexity 

    The Office of the CFO’s Top 10 Checklist for Simplifying Working Capital Complexity 

    For today’s Office of the CFO, complexity isn’t the exception. It is the operating reality. Shifting trade policies, fragile supply chains and managing across jurisdictions have made working capital management a tangled web. But complexity doesn’t have to be chaos. 

    Here is a practical checklist finance leaders can use to bring clarity, speed and control to working capital strategy without overhauling their entire infrastructure. 

    1. Map Your Complexity 

    Document all legal entities, geographies, systems and supply chain touchpoints that affect working capital. This baseline will guide every integration and improvement decision. 

    2. Unify Platforms Without Rip and Replace 

    Focus on integration, not disruption. Connecting existing platforms can centralize key data and processes faster than a full technology overhaul. 

    3. Streamline Cross-Functional Workflows 

    Align finance, sales, technology and operations on shared KPIs. A single source of truth improves decision-making and reduces delays. 

    4. Automate High-Friction Processes 

    Target manual processes in AR, AP and reporting. Even partial automation can free resources and improve accuracy. 

    5. Standardize Supplier and Buyer Data 

    Inconsistent onboarding, payment terms and documentation slow cash flow. Create templates and enforce them globally. 

    6. Embed Risk Mitigation in Working Capital 

    Integrate credit insurance tracking and exposure monitoring into workflows to avoid costly gaps. 

    7. Prioritize Execution Visibility 

    Identify and address local market bottlenecks early. Visibility at the execution level prevents small issues from escalating. 

    8. Build Playbooks for Special Cases 

    Non-disclosed financing and indirect payment arrangements require specialized processes. Pre-approve workflows to save weeks during execution. 

    9. Measure What Matters 

    Focus on liquidity, cycle times and cost of capital as leading indicators, not just lagging performance metrics. 

    10. Challenge Your Providers 

    Test their ability to deliver speed, flexibility, and tailored solutions. The right partner should meet your needs in real time. 

    Bottom line: Complexity will keep increasing, but with the right checklist, the Office of the CFO can turn it into a competitive advantage. For more insight, download the GSCF’s eBook, Simplifying Complexity in Working Capital Management: A Guide for the Office of the CFO. 

  • Value Creation in Uncertain Times: Private Equity’s Shift to Operational Agility 

    Value Creation in Uncertain Times: Private Equity’s Shift to Operational Agility 

    Traditional value creation models in private equity are being tested. In today’s environment, where assumptions can change in a matter of months, firms are focusing less on financial engineering and more on operational excellence and strategic flexibility. 

    Real-Time Risk Reassessment 

    More than 70% of PE firms now have dedicated portfolio operations teams to track performance and macro exposure in real-time, according to EY’s Global Private Equity Pulse. 

    Market volatility has made it clear that past assumptions don’t hold for long. That’s why leading PE firms are investing in portfolio monitoring tools that track real-time performance, risk factors, and macro exposure. Proactive surveillance allows firms to pivot quickly when circumstances change. 

    Operational Improvements and Tuck-In M&A 

    McKinsey reports that 50-70% of value creation in recent PE exits has come from operational improvements, a sharp increase from under 40% a decade ago. 

    Whether it’s finance transformation, supply chain optimization, or pricing strategy, operational improvements remain a cornerstone of value creation. Additionally, tuck-in acquisitions continue to be a favored tactic, allowing firms to grow platforms efficiently while maintaining control. 

    Always Exit-Ready 

    With longer hold periods and fewer predictable exit windows, firms are keeping their portfolio companies exit-ready at all times. This includes ensuring that reporting is clean, governance is solid, and KPIs are aligned with potential buyer interests. 

    Liquidity and Cash Discipline 

    In this climate, liquidity isn’t just about solvency, it’s strategic. Firms are paying closer attention to working capital, CapEx timing, and leverage. Maintaining strong cash positions enables companies to act quickly when opportunities or challenges arise. 

    Blackstone’s Take: Strategy in Practice 

    Blackstone’s President Jon Gray emphasized that while the IPO market has been the most impacted, “financially motivated buyers are still in the market.” As a result, Blackstone is doubling down on portfolio agility and targeting undervalued public companies for take-private transactions. This shift highlights the importance of operational readiness and strategic patience in value creation. 

    Conclusion: Adapting with Precision 

    Private equity’s approach to value creation is evolving from structured playbooks to dynamic, real-time execution. Agility, discipline, and portfolio integration are what separate high-performing firms in uncertain times. 

    How GSCF Can Help  

    GSCF partners with private equity firms to embed liquidity and working capital tools directly into their value creation plans. From improving receivables turnover to creating flexible alternative capital channels, we help firms execute with confidence and drive operational gains across portfolio companies. 

  • Private Equity and Global Risk: Rethinking Strategy in the Tariff Era 

    Private Equity and Global Risk: Rethinking Strategy in the Tariff Era 

    As macroeconomic and geopolitical factors converge, private equity firms are rethinking their exposure to global pressures, particularly in the form of tariffs and trade policy volatility. These forces are reshaping how deals are sourced, evaluated, and structured. 

    Sector Resilience and Rotation Toward Services 

    Certain sectors, especially software and business services, are being viewed as more resilient in the face of tariff uncertainty. These businesses often have fewer physical goods crossing borders and are therefore less exposed to direct tariff costs. However, inflationary effects can still impact downstream margins, particularly when cost inputs rise. 

    Geographic Diversification to Mitigate Concentration Risk 

    Firms are exploring geographic expansion to mitigate concentration risk. For example, a Canadian portfolio company may look to grow into the U.S. or Europe, not only for market opportunity but also to hedge against changes in trade policy. This is particularly relevant for funds with sector exposure in manufacturing, logistics, and consumer goods. 

    Tariffs as a Deal Structuring Variable 

    Deloitte’s 2024 M&A Trends Survey notes that nearly 1 in 4 cross-border M&A deals now includes tariff-adjusted valuation scenarios, underscoring the need for adaptive underwriting models. 

    In some M&A processes, the impact of tariffs is so significant that buyers are submitting dual bids, one assuming normal conditions and another adjusted for tariff exposure. This practice underscores just how embedded macro risk has become in PE underwriting. 

    Building Resilient, Globally-Aware Portfolios 

    Over 60% of private equity firms in North America cited geopolitical instability and trade policy shifts as a top risk in 2025, according to Preqin. In response, firms are embedding geopolitical analysis into due diligence. 

    Blackstone, for example, sees volatility from trade negotiations as an investment opportunity. CEO Stephen Schwarzman noted that uncertain markets often present the best time to deploy capital. With $177 billion in dry powder, Blackstone continues to act on global dislocation opportunities. He also revealed plans to invest up to $500 billion in Europe over the next decade, citing improving macro conditions, deeper government spending, and favorable valuations. 

    PE firms are taking a more analytical, scenario-based approach to global risk. Cross-functional diligence teams, including tax, trade compliance, and political risk analysts, are increasingly part of deal evaluation. 

    While the full impact of new tariffs may not yet be fully felt, firms should prepare for the possibility of more material disruptions as the year progresses. As such, firms are wise to hedge structurally now and factor in the potential downstream effects of trade disruptions to position themselves to respond with speed and flexibility. 

    How GSCF Can Help  

    GSCF helps clients navigate tariff volatility and geographic uncertainty by offering trade finance solutions that adapt to global risk. Whether structuring cross-border receivables programs or supporting localized funding needs, our solutions are designed to scale with your strategy and keep capital flowing despite external headwinds. 

    Now is the time to assess and understand your alternative financing options so when market signals shift or disruptions hit, you’re ready to act with confidence. GSCF ensures your financing structures are sound, flexible, and ready to deploy when timing is critical. 

  • Navigating Uncertainty: How Private Equity is Adapting to a Shifting Market 

    Navigating Uncertainty: How Private Equity is Adapting to a Shifting Market 

    Uncertainty continues to define the private equity (PE) landscape in 2025. From fluctuating macroeconomic signals to geopolitical shifts and evolving sector dynamics, PE firms face a complex set of variables when evaluating opportunities. The result? A significant widening in bid-ask spreads and a more cautious approach to deploying capital. 

    Bid-Ask Spread Widening: A Reflection of Market Ambiguity 

    According to PitchBook, the average global bid-ask spread in private equity widened by over 25% from 2021 to 2024, especially in tech and consumer sectors. This has further complicated deal structuring and contributed to delayed timelines. 

    Across many sectors, we’re seeing deal activity slow not because of lack of interest but because buyers and sellers are operating from very different assumptions. Sellers often anchor to past valuations, while buyers bake in risk premiums, recession fears and uncertainty around growth trajectories. This disconnect has created friction, especially in sectors with less predictable earnings. 

    Dry Powder Preservation and GFC Parallels 

    Bain & Company reports that global private equity dry powder reached $2.6 trillion by early 2025, a record high. Despite this, investors remain selective, deploying capital into high-conviction deals while waiting for clearer market signals. 

    Many funds are holding capital for what they consider high-conviction bets, deals that resemble post-2008 dislocation opportunities. During the Global Financial Crisis (GFC), quality assets were sold off under pressure. Some investors are preparing for similar opportunities to emerge, especially if credit markets tighten or distressed assets hit the market. 

    The IPO Slowdown and Extended Private Holding Periods 

    The initial public offering (IPO) window remains muted, pushing more companies to extend their time in the private markets. This has reshaped expectations around hold periods and fund life cycles. In turn, firms are focusing more heavily on value creation strategies to sustain long-term growth and remain flexible with exit timing. 

    Secondaries and Strategic Sales as Exit Alternatives 

    With public market exits limited, funds are increasingly looking to secondaries and strategic buyers for liquidity. Secondary transactions provide a way to return capital to LPs and generate DPI (distributions to paid-in capital), which is critical in today’s cautious fundraising environment. Strategic sales, particularly to well capitalized corporates, offer an attractive path when IPOs are off the table. 

    Signs of Rebound: A Blackstone Perspective 

    There are reasons for optimism. Blackstone’s Head of North America Private Equity, Martin Brand, recently noted that the firm expects “an improved environment for mergers & acquisitions and a pickup in IPO activity” in 2025, anticipating the ability to “sell and exit more than twice the number of private equity investments” compared to the prior year. This signals renewed market momentum and an opening of the exit window. 

    What This Means for 2025 and Beyond 

    The private equity market is not frozen, but it has become more selective. Funds are recalibrating valuation models, incorporating broader risk scenarios, and emphasizing discipline in underwriting. Precision, patience, and a well-prepared pipeline are more important than ever. 

    How GSCF Can Help  

    GSCF supports private equity firms by providing working capital solutions that bring flexibility and liquidity to their portfolios. Our platform enables real-time visibility across receivables, streamlined onboarding of suppliers and buyers, and scalable financing programs tailored to uncertain markets. We help clients unlock value even when exits are delayed or fundraising is challenging. Critically, GSCF can move faster than traditional lenders, delivering funding quickly when timing matters most. This speed and agility make us a strategic partner for firms looking to act decisively in a volatile environment. 

  • Capital On-Demand: A New Model for Working Capital Resilience 

    Capital On-Demand: A New Model for Working Capital Resilience 

    In uncertain times, companies need more than just traditional bank lending, they need speed, optionality, and creative solutions. At the webinar, “When the Heat is On: Working Capital as a Strategic Advantage in High-Stress Situations,” GSCF’s Lori Sternola discussed a next-generation solution: Working Capital as a Service. 

    This model combines capital access, technology, and expert services into a flexible offering tailored to today’s volatile environment. As Sternola explained, GSCF funds over $70 billion in transactions annually and supports companies across 75 countries, helping them pull the right levers, when and how they need to. 

    Key benefits of GSCF’s model include: 

    • Connected Capital: Access to both bank and non-bank funding, including AR financing and synthetic DPO extensions that don’t require supplier participation. 
    • Integrated Platform: Real-time visibility, automated workflows, and dynamic reporting provide agility and control, even under pressure. 
    • Expert Services: GSCF’s seasoned team supports clients in originating, managing, and optimizing working capital programs  

    Sternola emphasized that companies don’t need to choose between flexibility and control. “We built this model for moments like these,” she said. “Our clients can enhance liquidity, improve governance, and extend runway, without overhauling their existing banking relationships or internal processes.” 

    She also encouraged companies to challenge their providers. “You might think you’re out of time, but with the right team, we can assemble a solution in as little as two to four weeks.” 

    Catch the full story: Watch the webinar here. 

    GSCF Insight: Whether you need working capital to fund growth or stabilize operations, GSCF’s Working Capital as a Service model delivers fast, customizable, and frictionless access to liquidity. When the pressure is on, we help you move fast and stay in control. 

  • From Fragmentation to Control: Ingram Micro’s Working Capital Transformation

    From Fragmentation to Control: Ingram Micro’s Working Capital Transformation

    Ingram Micro, operating in over 75 countries, faced a challenge common to many global enterprises: a patchwork of local working capital programs that lacked cohesion. In the webinar, “When the Heat is On: Working Capital as a Strategic Advantage in High-Stress Situations,” Assistant Treasurer Brad Banga shared how this fragmentation limited visibility, delayed funding, and complicated compliance during high-stress periods like the COVID-19 pandemic. 

    Without a unified platform, each country team managed its own receivables financing programs using different processes and tools. The lack of standardization created hurdles in calculating costs, assessing risk, and delivering reliable reports to internal stakeholders or auditors. 

    By partnering with GSCF, Ingram Micro was able to: 

    • Centralize its global working capital data into one system of record. 
    • Standardize processes for invoice uploads, approvals and reporting across all markets. 
    • Improve governance and auditability, ensuring compliance and reducing operational risk. 
    • Enhance agility, allowing the treasury team to respond more quickly to changes in funding needs or market dynamics. 

    Banga emphasized the importance of future-proofing working capital programs: “Even if you’re just starting out with one or two programs, you need to build with scale and efficiency in mind.” 

    Want to learn more? Watch the webinar recording here. 

    GSCF Insight: Our technology and servicing platform helps corporates unify and scale their working capital programs globally. This can lay the groundwork for the Office of the CFO to move from tactical to strategic working capital. 

  • Strategic Planning in a Trade-Constrained World: Turning Risk Into Opportunity

    Strategic Planning in a Trade-Constrained World: Turning Risk Into Opportunity

    When tariffs rise or trade policies shift unpredictably, the ripple effects across the supply chain are swift and severe. For finance leaders, this isn’t just a compliance challenge – it’s a strategic inflection point.

    The Office of the CFO’s Imperative: Adaptive Capital Strategy

    Increased tariffs act like a tax on inputs, which tightens margins and complicates cash flow forecasting. This forces a shift in working capital strategy – from reactive cost containment to proactive capital reallocation. CFOs who treat tariffs solely as a line-item cost miss the broader picture: tariffs impact inventory positioning, supplier relationships, sourcing decisions and even customer pricing structures.

    This is where financial agility becomes a growth lever.

    By reassessing your capital structure and taking a connected capital approach, finance can realign liquidity to where it has the highest strategic impact – such as prepaying key suppliers to lock in price stability, investing in nearshoring to mitigate risk, or increasing access to alternative capital to bridge timing gaps in a volatile sourcing environment.

    Liquidity Under Pressure: Building Cushion Without Drag

    Tariffs, trade restrictions, and shifting geopolitical alliances strain liquidity in two key ways:

    • Longer lead times and higher landed costs: Capital gets trapped in transit or held in warehouses.
    • Disrupted supplier terms: Counterparties may demand faster payment or shift risk downstream.

    In this context, traditional metrics like DPO and DSO no longer tell the full story. Savvy finance strategists are building liquidity buffers not just to survive tariff-related disruption, but to deploy them as competitive advantages – allowing their companies to secure preferred vendor status, meet customer demand faster, or capitalize on distressed asset buys when competitors falter.

    Tariffs as a Catalyst for Strategic Reinvention

    While the immediate response to tariffs may be defensive (e.g., rerouting supply chains or raising prices), the long-term opportunity is offensive: transforming your capital allocation model to favor agility over rigidity.

    Ask yourself:

    • How quickly can your organization pivot sourcing or pricing strategies?
    • Do you have the right funding partners in place to flex when trade winds shift?
    • Is your working capital trapped in the wrong parts of your value chain?

    The companies that win in a tariff-laden future won’t be the ones that simply absorb costs – they’ll be the ones that translate those pressures into liquidity-backed decisions that fuel innovation and market share expansion.

    Contact us to see how GSCF can support your working capital needs.

    Explore our latest playbook for finance leaders navigating trade uncertainty.

  • Tariffs, Tension, and the Office of the CFO’s Competitive Edge

    Tariffs, Tension, and the Office of the CFO’s Competitive Edge

    The reintroduction of 25% U.S. tariffs on multiple countries is more than political posturing, it’s a macroeconomic shockwave that reverberates through every balance sheet. CFOs don’t have the luxury of waiting for trade policy to stabilize. The Office of the CFO must act now – to protect liquidity, preserve margins, and turn volatility into value.

    A CFO’s Reality Check

    The latest round of tariffs is forcing leadership teams to reassess supplier relationships, pricing strategies, and financing structures in real time. These aren’t theoretical risks – they’re immediate cash flow events. Procurement teams may be renegotiating contracts, but the lag between strategy and execution can be fatal to liquidity.  Unfortunately, the changeable nature of these tariff mandates doesn’t negate them – it actually increases the need for CFO’s to be nimble and prepared to respond quickly.

    That’s why GSCF offers a proactive approach with our Connected Capital model with alternative capital channels and integrated working capital programs to strengthen customers’ financial position and gain real-time control.

    Why This Isn’t Just About Trade

    Tariffs act as a slow-moving liquidity crisis. Margins compress. Suppliers become stressed. Cash conversion cycles elongate. If you’re waiting for your bank to offer more credit, you’re already behind.

    GSCF’s hybrid model has allowed us to:

    • Deploy alternative capital without increasing our leverage ratios
    • Maintain strong supplier ties by offering early payments without weakening our own liquidity
    • Access dashboards that model risk exposure across regions in real time

    This is not about riding out the storm. It’s about using the storm to reset how we finance growth.

    The Strategic Window Is Open, But Not Forever

    The 90-day pause before tariffs fully take effect isn’t a grace period – the run-up periods to implementation are a countdown. We’re using this window to help customers hardwire resilience into their working capital model. GSCF is a key partner in enabling that shift.

    If you’re still viewing working capital as an operational task, you’re missing the bigger play.

    This is finance’s moment to lead. Contact us today to see how GSCF can support your working capital needs.

    Contact us to see how GSCF can support your working capital needs.

    Explore our latest playbook for finance leaders navigating trade uncertainty.

  • The Connected Capital Blueprint

    The Connected Capital Blueprint

    Download the new GSCF eBook

    CFOs and finance leaders are under pressure to fund growth, exceed metrics and stay agile – all at once. Traditional financing strategies often can’t.

    That’s why we built the Connected Capital Blueprint – a practical guide featuring 7 real-world examples of how companies are transforming working capital into a competitive advantage.

    What you’ll find inside:

    • Alternative capital models that work in today’s environment
    • Flexible solutions for every working capital scenario – from M&A to chargebacks, large orders and more
    • Off-balance-sheet strategies that protect ratings and ratios

    If your current capital structure is slowing down your growth strategy, it’s time to rethink the model.

    Read the Connected Capital Blueprint