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Santa Monica, CA (May 24, 2021) – SG Credit Partners today announced the extension of its comprehensive credit platform exclusively serving lower middle market entrepreneurs and new website illustrating its expanded capabilities. The broad platform was developed to provide tailored lending solutions ranging from $1 to $10+ million for entrepreneurs seeking a customized structure spanning both business and personal assets.  The platform delivers a complete range of credit solutions including:

  • cash flow,
  • collateral-based,
  • hybrid structures,
  • high net worth,
  • technology & recurring revenue, and
  • special situations lending

SG Credit Partners’ extensive platform provides for the credit needs of business owners seeking a lender with a holistic approach to their capital needs.  The ability to structure first-lien, split-lien, second-lien or uni-tranche transactions based on cash flow, working capital assets, equipment, real estate, intangibles, and personal assets individually or in a hybrid structure makes the platform unique in the lower middle market.

“This situational credit platform was designed to serve the needs of the lower middle market entrepreneur.  The platform was developed over the past eighteen months to fill voids in the credit market left by large credit funds unable to meet smaller needs and traditional lenders being constrained by conforming formulas,” said Andrew Hettinger, CIO of SG Credit Partners.

SG Credit is well positioned to fully serve its clients and better partner with its core referral sources. “We have national reach, a broad product suite, and a strong, permanent capital base to provide a one-stop solution for entrepreneurs and our traditional commercial finance partners unlike any other lender or fund in the market today”, said Charlie Perer, Head of Originations.

About SG Credit Partners

SG Credit Partners is a family-office backed lender providing situational capital to lower middle market businesses and entrepreneurs requiring tailored solutions and certainty to close. We’ve established a broad credit platform to solve capital needs that traditional banks, non-bank lenders, single-product lenders, and larger funds cannot due to regulatory, timing, funding, or size constraints.

Efficient in process, thoughtful in approach, and committed to building strong, lasting relationships, our success is measured over the long term by earning the trust of entrepreneurs and their advisors who come to us in their time of need. Headquartered in Southern California with offices throughout the country, since inception SG Credit Partners has provided in excess of $350 million to a variety of industries and businesses across the country.

SG Credit Profile: Technology (SaaS)

The Company: Provider of B2B and B2C telephony-related security services.

The Financing Situation: The Company was seeking non-dilutive growth capital to execute on sales & marketing initiatives and have the ability to close quickly on accretive acquisitions.

The Solution: SG was able to get comfortable with the transaction due to the Company’s consistent growth in MRR, strong retention metrics, profitability, and experienced management team. Within 3 weeks from signed term sheet, SG provided a $2MM growth capital facility with $1.5MM funded and an additional $500K tranche available based on continued growth.

The Company: Privately held independent registered investment advisor (RIA) that provides wealth, asset, and business management services to high-net-worth individuals and families. The Company has a variety of unique services not typical of traditional RIAs including access to alternative investments.
Assets Under Management: $300MM+
 
The Financing Situation: The Company was experiencing rapid growth in AUM and planned to go to market to find a strategic partner that could provide the financial and operational support needed to continue to scale the business. Ahead of that transaction, Company management wanted to secure a non-dilutive loan to help finance operational burn and extend runway. The capital would allow the Company to continue to add AUM and give it time to improve enterprise value ahead of a transaction.
 
The Solution: SG was able to get comfortable with the transaction due to the Company’s sticky recurring revenue business model, projected growth in run-rate revenue supported by a strong pipeline, the enterprise value of the Company, and its clear path to profitability. SG was able to close the transaction within 10 days of a signed term sheet.

Product Type: High Net Worth Guarantor

The Company:
A privately-held family investment vehicle.

The Financing Situation:
A high net-worth couple (“the Guarantors”), via the family investment vehicle, were in the later stages of a ground-up construction on a new home. The total cost had eclipsed the initial budget and the additional capital required to complete construction was beyond the loan-to-value comfort level for traditional lenders.

The Solution:
SG was able to underwrite this transaction by taking a holistic approach toward the Guarantors’ personal financial profile, and not restricting leverage solely to the subject property. SG worked quickly to provide a $1.0MM loan structured around the Guarantors’ personal assets and diversified income streams.

This transaction highlights SG’s ability to structure and underwrite guarantor-based loans. While many of you know us as a cash flow-based lender, we now provide special situation (balance sheet) loans requiring creativity, flexibility, and speed to close.

The Company:

A single-asset real estate holding company owned by a prominent carwash company in the Midwest. The carwash company is just one subsidiary of a broader investment company with interests in a multitude of industries.

The Financing Situation:

The Company had an executed purchase agreement on a property that it intended to acquire and construct an expansionary carwash location under its existing brand. The Company needed 100% upfront debt financing to close on the acquisition quickly and working capital for the entitlement process before seeking construction financing.

The Solution:

SG underwrote the real estate as well as the personal guarantees of the two founders, who maintained significant outside personal liquidity as well as equity in various real estate and business holdings. The strong personal balance sheets of the guarantors allowed SG to be aggressive with its advance rate on the real estate collateral (>100% LTV when including additional working capital provided) and SG’s capital was non-dilutive.

This transaction underscores SG’s ability and willingness to structure and underwrite collateral based / guarantor-based loans. While many of you know us as a cash flow-based lender, we now provide special situation (balance sheet) loans requiring creativity, flexibility, and speed to close. We also have a strong interest in providing customized solutions for liquidity constrained high net worth entrepreneurs.

The Company: Enterprise SaaS platform that provides a complete end-to-end suite of CRM tools to clean, protect and enhance company and contact information, leading to improved organizational efficiency, reliable business intelligence, and maximized ROI on CRM and marketing automation investments. Recurring Revenue: $8+ million.

The Financing Situation: The private equity backed Company was looking to buy out a significant shareholder and net additional working capital to make strategic hires and help fund growth initiatives. 

The Solution: SG Credit provided the Company with a non-dilutive $2.5 million term loan with structured amortization early in the term to free up cash flows and liquidity to fund growth initiatives. This structure allowed the Company to seamlessly buyout the existing shareholder without complicating existing shareholder dynamics. SG Credit was able to close the deal within 3 weeks after quickly getting comfortable with the Company’s recurring revenue, client base quality, and continued shareholder support. 

This transaction demonstrates SG’s ability to underwrite SaaS / recurring revenue loans. While many of you know us as a cash flow based lender, we now provide non-dilutive SaaS / recurring revenue loans requiring creativity, flexibility, and speed to close.