Asset-based Lending and Lender Finance

 

Business Overview

Solar Capital Partners has dedicated teams who specialize in making asset-based senior secured loans and factoring facilities to small and middle market companies and commercial lenders. We lend on a secured basis against a borrower’s hard collateral including accounts receivable, inventory, plant and equipment, and loan portfolios of commercial finance companies.

We target borrowers seeking to fund working capital and growth capital requirements who may lack access to traditional bank or cash flow-based financing because they are either too small and/or lack the more mature financial profile that banks seek to finance.

Evolution of SCP’s ABL Platform

In 2009, SCP formed a dedicated asset-based lending team focused on active coverage of the financial services industry to take advantage of funding dislocations resulting from the 2008 credit crisis. Since inception, the lender finance team has originated over $1 billion in transactions to commercial finance companies who needed access to more flexible working capital financing than banks were willing to provide.

In 2012, Solar Capital Partners expanded its asset-based lending and lender finance business through Solar Capital Ltd.’s acquisition of Crystal Financial (“Crystal”). Crystal is an independent specialty commercial finance company whose core team has been together since 1993 and has originated, underwritten and managed in excess of $20 billion of new secured debt for its clients.

In 2013, we entered the healthcare specialized ABL business through Solar Senior Capital’s 2013 acquisition of Gemino Healthcare Finance (“Gemino”). The Gemino team has originated approximately $1.6 billion of financing commitments since inception in 2007.

In 2017, we further expanded our asset-based lending and factoring business through Solar Senior Capital’s 2017 acquisition of North Mill Capital, LLC. (“North Mill”) and its senior ABL investment professionals who have worked together over 20 years. Since inception, the North Mill team has originated over $600 million of asset and invoice based financings.

Target Borrowers

  • U.S. middle market companies across a diverse set of industries; revenues between $1M and $500M
  • U.S. and Canadian commercial finance companies; assets between $50M and $300M
  • Asset-based lenders, Factoring companies, Leasing businesses, Consumer installment lenders, real estate lenders and small business lenders
  • Strong collateral base, including high quality customer accounts receivable
  • Visibility into continued financial viability
  • Borrowers who can monetize assets on balance sheet assets as a source of working capital Sponsored and non-sponsored

Transaction Types

  • Working Capital
  • Factoring
  • General Refinancing
  • Growth Capital
  • Turnaround situations
  • Buyouts/Acquisitions
  • DIP Financing

Typical Transaction Profile

$1M to $125M