Interim Head of Funding and Balance Sheet Management

Finance & Accounting London, United Kingdom


Description

Funding Circle is the leading SME loans platform in the UK with operations in the US, Germany and the Netherlands. The business is authorized and regulated by the FCA and has been listed on the main market of the London Stock Exchange since October 2018.

Funding Circle has a diverse investor base, including retail investors, banks, specialty finance companies, asset management companies, insurance companies, government-backed entities and funds. As at end 2019, total loans under management totalled £3.7bn and new originations totalled £2.35bn. Since inception, over 80,000 business have financed their goals by borrowing more than £8.7bn through Funding Circle in the UK, US, Germany and the Netherlands.

During 2019, Funding Circle established ABS warehouse programs in the UK and the US, as well as completing two securitisations. To date, this programme has represented approximately 16% of Funding Circle’s loans under management.

Core deliverable's of the assignment:

An interim Head of Funding and Balance Sheet Management is sought for a 3 – 6 month engagement to help the newly arrived CFO shape the “go forward” model for this key capability - to design and build an organisational design, an operating model/ways of working, a set of processes, metrics and controls suitable for the continued evolution of an ever more sophisticated set of investor products.

Existing activities related to funding and balance sheet management are currently undertaken within finance and elsewhere in the business. As part of this role, it is expected that the successful candidate will specify the ongoing role profile for a permanent appointment to this role.

The role will report to the CFO and be a key member of the Finance Leadership Team.

Key working relationships:
  • Capital Markets – a team reporting to the CEO tasked with the origination and structuring of investor vehicles.
  • Risk – Second line activities around Platform Funding and Liquidity Risk. First line engagement with projected and actual risk forecast, performance and characteristics of segments of the borrowing base, stress scenarios etc.
  • Finance – in terms of accounting, financial control, planning and analysis etc. A small “quant” team exists in finance that will report to this role. As part of the assignment, consideration needs to be given how other activities within finance would map to this new structure and what additional resource is needed.
Elements of role include:

Overall strategy:

Strategy around the design and diversification of investor products (with Capital Markets), including setting of targets, and wider portfolio management (e.g. “hold” vs “sell” of residuals or other on balance sheet items). Consideration of diversification, pricing, resilience.
  • Risk Management -
Support CFO in first line ownership and oversight of platform funding and liquidity risk.
  • New transactions -
Decision support, modelling, commercial evaluation and governance around individual new transactions. Provide tools to the Capital markets team to assist with structuring scenarios.
  • Ongoing Portfolio Management - 
Active management of the existing portfolio; manage as if a “listed fund”, including ongoing asset and liability management.

Robust and clear focus on underlying drivers of performance.

Identify, assess, monitor and manage key platform funding and liquidity risks, with monitoring and reporting of KPIs, and other performance against key “guard rails”. Monitor transaction level triggers, concentration limits, loan allocations, covenants. 

Consideration of allocation of borrower originations to investment vehicles. 

Execute day-to-day operational processes and maintain effective controls. 

Development and governance over independent cash flow and fair value and other models used to support investor products. Oversight and governance around Fair Market Value inputs, models, outputs and sensitivities. Ensure link to wider financial forecasts.

Link to correct accounting treatment of these vehicles and their income and cash flows (with Financial Controller).

Oversight and governance of any direct credit exposures.

Evaluation of any changes to various working group and governance structures in place.
  • General Corporate Treasury and Liquidity Management.
Key Attributes and experience:
  • Experienced interim professional, able to rapidly come in, assess situation and needs and make recommendations.
  • Able to thrive in a fast-paced, open, collaborative environment.
  • Able to take peers, stakeholders and wide impacted colleagues on the journey.
  • Broad Treasury experience, including deep experience of Financial Services, including lending products and detailed knowledge of ABS and similar structures.