Government Receivables Represents A Large Opportunity As A Standalone Asset Class
Since COVID decimated the US economy, we are seeing unprecedented levels of government tax incentives being offered to corporations to stimulate growth and build a low carbon economy.
Businesses are looking to accelerate the receipt of this government cash as many programmes can take 5 months + to process an application.
Banks in the US are under pressure due to poor balance sheet construction and increased capital adequacy requirements meaning they are unable to fund these receivables.
B2 exploits the inefficiencies of the Government tax Credit System.
Banks and traditional lenders will not be able to meet the receivable funding needs of high-quality private businesses despite these receivables being backed by the US government.
This leaves a structural funding gap positively skewing the risk reward of these assets.
B2 invests in high-quality, government backed receivables, originated by a pre-existing network of operating partners and regulated accountancy firms, resulting in outsized returns for investors.