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Tag: Working Capital

  • 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. 

  • 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.

  • How Channel Sellers Can Offer Competitive Terms for Buyers

    How Channel Sellers Can Offer Competitive Terms for Buyers

    Channel sellers – especially in the tech, hardware, and telecom sectors – know that offering extended payment terms is table stakes to stay competitive. But these terms often create a cash flow crunch for suppliers, requiring them to float capital while waiting for customers to pay.

    For many, the only solution has been to lean harder on their credit facilities, sacrifice growth investments, or worse – delay supplier payments. None of those are sustainable.

    Enter Distribution Finance, a form of Connected Capital that allows companies to offer longer payment terms to buyers without tying up working capital or impacting their balance sheet.

    This unlocks new opportunities:

    • Grow channel sales by making terms more attractive
    • Buyers maintain liquidity
    • Suppliers get paid faster

    Download the Connected Capital Blueprint eBook to learn how leading tech suppliers are staying competitive without sacrificing liquidity.

  • Navigating Tariff Uncertainty: A Strategic Window for Corporate Resilience

    Navigating Tariff Uncertainty: A Strategic Window for Corporate Resilience

    In a world where geopolitical volatility increasingly shapes economic strategy, the latest 90-day pause on U.S. tariffs is more than a breather—it’s a signal. A signal that companies must rethink how they manage liquidity, adapt their working capital models, and position themselves for growth amid ongoing uncertainty.

    At GSCF, we see this as a pivotal moment.

    Tariffs Are More Than Trade Policy—They’re a Working Capital Challenge

    Tariffs don’t just hit the P&L – they tighten liquidity, disrupt supplier relationships, and distort pricing strategies. Traditional responses like renegotiating contracts or shifting sourcing take time and offer limited relief. What corporates need is agility – the ability to act quickly and strategically, without adding risk to the balance sheet.

    That’s where GSCF’s Connected Capital ecosystem steps in.

    Future-Proofing Liquidity with Connected Capital

    Our clients turn to us for more than financing – they rely on GSCF for integrated working capital solutions to give them a competitive advantage.

    With our Connected Capital solutions, we help clients:
    • Access alternative capital alongside traditional bank funding, unlocking a hybrid model that increases flexibility without increasing debt.
    • Gain real-time visibility into liquidity positions and supply chain risk through data-driven analytics.
    • Accelerate cash conversion cycles, releasing capital that can be redeployed for growth initiatives – even during tariff-driven disruptions.

    And importantly, our solutions are designed to scale, enabling corporates of all sizes to navigate complexity and capitalize on opportunity.

    The 90-Day Advantage

    This temporary pause offers a strategic window for action. In these next 90 days, GSCF can help implement a tailored working capital program that improves cash flow, strengthens supplier partnerships and enhances resilience.

    The companies that act now won’t just weather the next tariff, they’ll come out stronger, more liquid, and more agile than their competitors.

    Let’s Talk

    If your business is assessing the impact of tariffs, or simply seeking to improve its working capital position, we should talk. At GSCF, we’re partnering with enterprises and growth corporates across sectors to turn uncertainty into opportunity through the power of Connected Capital.

  • Resilient Working Capital Strategies in a Tariff-Impacted Economy

    Resilient Working Capital Strategies in a Tariff-Impacted Economy

    In today’s interconnected global economy, tariffs have become a critical factor affecting business operations and financial strategies. Companies with complex supply chains are particularly vulnerable to the effects of tariffs, requiring them to adapt their working capital strategies to maintain financial stability and drive growth.

    Challenges Posed by Tariffs in Complex Supply Chains

    1. Increased Costs: Tariffs raise the cost of imported goods, squeezing profit margins. Companies may need to pass these costs onto consumers, potentially reducing demand for their products.
    2. Supply Chain Disruptions: Tariffs can lead to supply chain disruptions as companies seek alternative sources for materials. This can result in delays and increased costs associated with finding new suppliers.
    3. Cash Flow Management: Higher costs and supply chain disruptions can strain a company’s cash flow. Effective working capital management becomes crucial to ensure liquidity and maintain operations.

    Strategies to Mitigate Tariff Impacts

    1. Diversifying Suppliers: Companies can reduce their reliance on tariff-affected imports by diversifying their supplier base. This can help mitigate the risk of supply chain disruptions and manage costs more effectively
    2. Negotiating with Suppliers: Engaging in negotiations with suppliers to secure better terms or bulk discounts can help offset the increased costs due to tariffs
    3. Optimizing Inventory Management: Efficient inventory management can help companies maintain optimal levels, reducing the need for expensive imports and minimizing the impact of tariffs on cash flow
    4. Adjusting Pricing Strategies: Companies may need to adjust their pricing strategies to reflect the increased costs. This can involve passing some of the costs onto consumers or finding ways to absorb them without significantly affecting profit margins

    Unlocking Liquidity and Driving Sales Growth with Connected Capital

    GSCF offers innovative Working Capital as a Service solutions to help companies navigate the complexities of tariffs and create, manage and analyze working capital programs. GSCF’s technology, expert services and Connected Capital ecosystem integrate alternative capital and bank financing, providing a comprehensive platform for managing liquidity and driving growth.

    1. Access to Alternative Capital Sources: GSCF’s platform allows businesses to complement their core bank funding with access to alternative capital. This hybrid approach provides flexibility and stability, enabling companies to manage cash flow, extend payment terms, and respond quickly to changing market conditions.
    2. Enhanced Risk Management: By integrating multiple funding sources, GSCF offers broad-spectrum risk coverage. Advanced analytics and risk management tools provide greater visibility into supply chain and financial performance, mitigating potential risks and ensuring business continuity.
    3. Improved Cash Flow and Liquidity: GSCF’s Connected Capital helps businesses unlock liquidity by optimizing cash conversion cycles. This frees up working capital for strategic reinvestment, supporting sustainable growth and improving cash flow.
    4. Scalability and Growth: GSCF’s solutions are designed to support businesses at every stage of their growth journey. From emerging markets to large enterprises, Connected Capital provides scalable solutions that drive revenue acceleration and market expansion.

    Tariffs present a complex challenge for businesses, especially those with intricate supply chains. By leveraging GSCF’s Working Capital as a Service solutions, enterprises and growth corporates can access alternative capital sources, unlock liquidity, and use working capital to drive sales growth. These strategies enable businesses to navigate the impact of tariffs on their supply chains and continue to thrive in a competitive global market.