NY Firm to Launch Diamond Industry Lending

April 19, 2017 4:15 pm Published by Leave your thoughts

RAPAPORT… The midstream diamond and jewelry industry is set to gain access to more than a billion dollars in loans from a New York-based lender that sees a “dire need” for funding in the sector.

Excelsior Capital Ventures will start engaging with borrowers with an aim to narrow the industry’s $6 billion liquidity shortfall by at least $1.5 billion by 2019, the company said. Up to $20 million can be lent to a creditworthy client against diamond and precious-metal inventories as collateral. The firm will start lending on October 3.

The firm plans to co-lend with major banks that are already in the business of providing financing to the industry and said it is in talks with all of them to tap into their experience.

“We are in an environment where the diamond and jewelry industry is experiencing a significant contraction in lending,” said Nehal Modi, Excelsior’s founder and the former head of Indian jeweler Gitanjali’s U.S. operations. “There is a dire need for new capital and greater liquidity in order to expand the companies and industry at large.”

Excelsior was founded in 2015 by Modi and Jon Mitchell, former president and COO of Aston Luxury Group, as well as David Barr, ex-chairman of Samuels Jewelers. The company aims to provide working capital loans to midstream borrowers, as well other value-added services.

From: http://www.diamonds.net/news/NewsItem.aspx?tc_dailyemail=1&ArticleID=57765


Categorised in: ,

This post was written by StettnerInvestment

Comments are closed here.