Opportunity Overview 

Start up financing business selling servicing the SME market  

• founders will invest their own equity to develop a sustainable business 
• Cosmos forecast a modest loss of <$500k first year and with acquisitions by year 5 might expect a book >$80m, income >$15m and earnings margin 30% 

Cosmos to offer debtor, factoring and trade finance across a highly diverse set of end‐markets  

• wholesale trade, manufacturing, business services, labour hire, transport and storage and other industries  

Investment Thesis 

Sustainable Debtor Finance industry in Australia 

• despite significant historical growth, the Australian debtor finance market has a relatively low penetration rate 
• shifting perception of debtor financing being a funder of last resort to being a funder of growth

Expect rapidly growing revenue and earnings profile from ‘operating platform’; Cosmos earnings more dependent on driving sales origination than actual product pricing  

• Cosmos earnings will be reliant on the ability of its BDM to source new clients cost effectively that need a high utilisation debt facility 
• founders to identify and execute key strategic partnerships to fund growth  
• shortfall in working capital is a regular challenge for the SME market; Cosmos will seek to service this steady demand 

Founders to fund the start up; secure warehouse facility to fund client lending  

• limited start up costs to be funded by the founders 
• warehouse facility required to fund the client’s trade debtor ledger 

Experienced management team to facilitate growth strategy  

• competent, experienced management with technical expertise have a demonstrated track record 
• have successfully implemented origination strategies to develop a new start up business 

Transaction Dynamics 

Start up business looking to grow rapidly  

• debtor and trade finance business looking to develop a book exposure >$80m 
• founders seek further equity $1.5m to underpin existing warehouse debt facility $20m to fund client trade debtors book