Vanbridge and GreensLedge Announce Joint Venture and Launch of Alternative Letter of Credit (ALOC) Facility

NEW YORK–(BUSINESS WIRE)–Vanbridge, an EPIC company (Vanbridge), a diversified insurance and capital solutions firm and GreensLedge, a global investment banking and advisory firm, announced today the formation of their joint venture company, Convergence Point Solutions (CPS), and the launch of its Alternative Letter of Credit (ALOC) Facility, an efficient, off-balance sheet solution for companies to post collateral for Casualty insurance programs.

The ALOC Facility is designed for companies that operate in industries that are required to post significant collateral for their Casualty insurance programs, thereby reducing their credit capacity, impacting liquidity and working capital.

Convergence Point Solutions has developed a groundbreaking alternative to satisfy these traditional collateral requirements through its ALOC Facility, which creates off-balance sheet credit capacity outside the traditional banking system. Companies pay a credit-based fee, and the Facility arranges for an LOC to be issued by an NAIC-approved bank as collateral for their Casualty insurance policies. This replaces and releases their existing collateral dollar for dollar and restores their credit capacity.

What makes the ALOC Facility unique is how Convergence Point Solutions manages the risk in the background. Underlying CPS’s innovative approach includes identifying the collateral as credit risk on a portfolio basis and recognizing the regulatory protections for the true risk of default.

“By leveraging the financial and insurance capital markets together, we have created a solution to solve an insurance-related problem. We expect this solution to be transformative in industries where high collateral requirements are the norm,” said Quentin Hills, Managing Principal at Vanbridge.

Lesley Goldwasser, Managing Partner of GreensLedge, added, “We are excited to partner with Vanbridge and leverage our combined experience and expertise on this innovative solution that addresses a specific market need.”

The structure is primarily focused on providing liquidity to clients in a cost-effective manner. “We see this as a game-changing solution for these companies. Restoring their working capital capacity can substantially improve their operational capabilities, making it easier for them to adapt to market conditions and pursue growth opportunities,” said Philip V. Moyles, Jr., Managing Principal and CEO of Vanbridge.

The application process is straightforward and does not involve the underwriting of claims and losses, just a standard credit underwriting package. The Facility has launched, and companies will be able to join on a monthly basis.

About Convergence Point Solutions
Convergence Point Solutions is a strategic partnership between two market leaders, Vanbridge and GreensLedge, aimed at delivering sophisticated financial solutions that anticipate and adapt to market dynamics. www.convergencepointsolutions.com

About Vanbridge
Vanbridge, an EPIC company, is a fully diversified insurance and capital solutions firm that provides products and services at the intersection of the insurance, private equity and hedge fund industries. Specializing in solving risk-related issues utilizing insurance and alternative capital structuring technology, Vanbridge bridges the gap between the insurance and capital markets, allowing our clients to manage their risk, enhance their investment strategies, and strengthen their long-term financial performance.

About GreensLedge
GreensLedge is a global investment banking and advisory firm with vast experience in the structured finance and alternative investment marketplace. GreensLedge has helped clients deliver value worth over $130 billion across traditional capital markets and privately tailored capital raising and financing solutions.