Fintech Sector: Capital Structure Observations
• As the global economy starts to digest the impact of Covid-19, a number of businesses are reconsidering critical capital allocation decisions for the next period. The broader fintech sector has weathered the storm reasonably well given new online activity, notwithstanding some impact on revenues and margins as the pandemic reduces wider economic activity.
• Key capital structure considerations for CFOs will be around future requirements for the business, funding for inorganic growth, returns expectations from shareholders, leverage capacity and funding source diversity and flexibility.
• Our analysis reviews recent trends impacting these capital considerations to better inform future financing decisions.