The Collapse Greensill Exhibition Company had a Big Technology Gap

Lex Greensill promoted his business as a financial future, speaking up better technology than Wall Street competitors that allowed him to lend at very low rates based on real-time information.

But former employees of Greensill Capital, as well as others familiar with its computer systems, paint a very different picture of the lender’s technological capabilities.

Instead of risk in his business being assessed through proprietary technology tactics, much of the work was done on spreadsheets or other basic programs. New projects were not always successful, and even near the end, the industry was scrambling to find a partner to fill the gap in its technical capabilities.

The company’s internal operations have been in the spotlight after falling this month, and the descriptions raise new questions about how it went from startup to tech unicorn to an estimated valuation of $ 7 billion at one time. Along the way, his Australian founder attracted investors such as SoftBank Group Corp., on former UK Prime Minister David Cameron as an advisor, and forged profitable ties with Credit Suisse Group AG.

The building houses the headquarters of Greensill Capital in London.

Photographer: Hollie Adams / Bloomberg / Bloomberg

This story is based on conversations with people who are involved with Greensill and know what he did, talked about an anonymous situation, as well as court filings and documents.

A prime example of Greensill hype was the reliance on tech partner Taulia Inc., which provided a platform to connect with companies using supply chain financing.

As Greensill went into liquidation, Taulia received funding from banks including JPMorgan Chase & Co., allowing service companies that had previously relied on Greensill to hold on. Sin killed plans by Athene Holdings Ltd with the support of Apollo to buy Greensill ‘s IT systems and intellectual property.

The fact that Athene walked away is a sign of Greensill’s low tech value. Even at the time of negotiation, Athene was willing to pay just $ 60 million.

According to one acquaintance of the company, there was a great moment as the crisis escalated. In the week before it collapsed, employees of the lender approached a fintech competitor, admitting that Greensill had little technology and asking if the competitor could be a service provider to the company. As a result of the fall of Greensill, these talks never took place. Greensill executives declined to comment for this story.

The Greensill Fallout

  • Greensill Capital filed for bankruptcy
  • Greensill Bank closure
  • Credit suisse silver freeze tied to Greensill
    • against money for money
    • chief executive officer
  • GFG Alliance hit money cròg
  • SoftBank wrote a value of investment in Greensill
  • Tokio Marine Holdings Inc., which wrote insurance for Greensill, is facing a larger-than-expected release

Greensill needed very little in terms of advanced software, especially supply chain finance, the industry he was heavily talking about. Financing invoices is a simple process, involving the purchase of a guarantee of future payment at a discount, so that you get the full payment later forward. The more complex technology was the interface between companies and asset providers, much of which was handled by partner Taulia Inc. and other third party providers.

Lex Greensill

Lex Greensill

Source: Greensill

The U.S. lawsuit sheds light on Greensill’s unconventional methods

But Greensill had another business called “future accounts receivables.”