Debtor and trade finance business, Scottish Pacific (ASX:SCO), operates primarily in Australia where it is a top three provider of debtor finance solutions with 20% market share, but also with a presence in New Zealand and the UK. We participated in the IPO early in the September quarter, with the stock performing strongly during the period for our flagship portfolio, OC Premium Small Companies. Debtor financiers, such as SCO, provide financing to SMEs to bridge the cash flow gap between their expense cycles and the collection date of their receivables. SCO has a number of key characteristics we believe will make it a solid contributor to the portfolio over the longer term, including its scale and competitive position, which will provide it with a meaningful cost advantage, a large distribution network, which should underpin its growth, a solid track record in credit assessment and an experienced management team led by industry veterans with combined decades’ experience in the sector. (VIEW LINK)