Deal Closings

SG Credit Profile: Software & Technology

The Company: X1 is a market leader in remote preservation and ESI collection software. The Company’s products are utilized by F500 companies, law firms, and government agencies for legal, compliance, and governance purposes.

The Financing Situation: X1 required growth capital to continue new product development and to bolster its enterprise sales team.

The Solution: SG was supportive of the transaction given the Company’s ARR growth, strong enterprise customer retention, and continued investor support. SG structured a $2.5MM non-dilutive credit facility around the Company’s ARR, allowing existing investors to capture upside in enterprise value generated by additional growth. SG moved quickly to close the transaction within three (3) weeks.

Chicago, IL – June 7, 2022 – Stonegate Capital, a division of SG Credit Partners (“SGCP”), a family-office backed lender providing capital to lower middle market businesses and entrepreneurs, is pleased to announce the closing of a senior debt investment in Van Leeuwen Ice Cream, a leading brand of premium ice cream products in the U.S.

Founded in 2008 by brothers Ben and Pete Van Leeuwen and Laura O’Neil, Van Leeuwen began as a single ice cream truck and quickly grew into a nationally recognized brand known for its made-from-scratch dairy and vegan ice creams which are available online, in stores, and at 30+ scoop shops across the country. The company sources high quality ingredients and uses simple recipes to create the best ice cream for all.

“Innovation has been at the center of the company’s success having first ascended as a leader in ice cream, to the development of unique and wildly popular flavors, to the most recent launch of their ice cream bars,” said Dan McCallum, Director at Stonegate Capital. “Van Leeuwen’s approach to making the best products with the best ingredients was an ideal fit for our investment philosophy to support mission-driven market-leaders.”

“Stonegate Capital has been a valued partner since we started our relationship in early 2022.  They consistently show a deep understanding of the complexities and flexibility needed to assist a high-growth and innovative company in the ice cream space.  They have become an invaluable member of our extended team as we balance both our scoop shop and wholesale channels growth,” said Ben Van Leeuwen, CEO and Co-Founder of Van Leeuwen Ice Cream. 

Stonegate has significant experience investing in the emerging food and beverage space. Current and past investments include Clio Snacks, Country Archer Provisions, Purely Elizabeth, Simple Mills, Van Leeuwen, and Zevia.

About Van Leeuwen

Van Leeuwen is a leading brand of premium ice cream products in the U.S. Based in Brooklyn, NY, Van Leeuwen’s products can be found online, in stores, and at 30+ scoop shops across the country. Van Leeuwen is a mission-driven organization on a quest to make good ice cream from good ingredients that makes you feel good. For more information and to browse Van Leeuwen’s products, please visit www.vanleeuwenicecream.com.

About Stonegate Capital / SG Credit Partners

Stonegate Capital, a division of SG Credit Partners (“SGCP”), is a family-office backed lender providing capital to lower middle market businesses and entrepreneurs requiring tailored credit solutions. Stonegate and SGCP provide structured credit solutions ranging from $2 Million – $20 Million primarily via three credit verticals: Software & Technology, Consumer Products, and Lower Middle Market. The firm has collectively deployed over $500MM+ of capital to lower middle market businesses across a variety of industries. For more information, please visit www.sgcreditpartners.com.

SG Credit Profile: Software & Technology

 The Company: Rallio is a social media management SaaS platform that provides brand control and reputation management solutions to franchise businesses.  

The Financing Situation: Rallio was seeking non-dilutive growth capital for opportunistic M&A and to execute on a strong new customer pipeline.

The Solution: SG was supportive of the transaction given the Company’s ARR growth, strong retention, and scalability of the platform. SG’s efficient underwriting process developed via executing over 100 software and technology transactions enabled a closing timeframe of less than three (3) weeks. This streamlined approach allowed the Company to focus on day-to-day management and growth of the business rather than being sidetracked by heavy due diligence.

 Please visit Rallio’s website for additional information: www.rallio.com

Stonegate Capital is excited to announce it has closed on a senior debt investment in Clio Snacks. Founded in 2015 by Sergey Konchakovskiy, Clio offers a line of handheld Greek Yogurt Bars and Granola & Yogurt Parfait Bars that combine the benefits of whole milk Greek yogurt – which are high in protein and probiotics – with an irresistible cheesecake-like texture and decadent dark chocolate coating. Clio recently launched three new innovative additions to its refrigerated, handheld bar portfolio: Chocolate Greek Yogurt Bars, Vanilla Less Sugar Yogurt Bars and Vanilla Almond Granola & Yogurt Parfait Bars.

“Clio is an innovative fresh snacking brand and we are ecstatic about our partnership with the Company. We pride ourselves on aligning with the high-growth, entrepreneurial backed market, and this thesis aligns perfectly with Clio’s exciting market disruption in the healthier for you snacking space” said Jordan Hoppe, Director at Stonegate Capital. “We are certainly looking forward to being a collaborative partner in Clio’s already impressive growth story.”

Stonegate Capital, a division of SG Credit Partners, is a private credit investment firm with a unique approach to providing financing solutions to established lower middle market businesses with a heightened focus on emerging brands within the food and beverage, consumer products, and e-commerce spaces.  Recognizing that each company has unique and specific needs, Stonegate focuses on aligning senior credit facilities to the growth and liquidity requirements of a business.

Please visit the Company’s website for additional information:

www.cliosnacks.com

For additional details regarding Stonegate Capital’s investments, please contact us directly at:

www.sghcap.com

Jordan Hoppe: 312-971-8136 | jhoppe@sghcap.com

Evan Waggoner:  336-512-6388 | ewaggoner@sghcap.com

Dan McCallum: 312-971-9445 | dmccallum@sghcap.com

Ryan Woody: 312-971-1551 | rwoody@sghcap.com

Andrea Hedrick: 773-562-8477 | ahedrick@sghcap.com

SG Credit Profile: Technology (SaaS)

The Company: A bootstrapped communications SaaS platform catering to the insurance industry.

The Financing Situation: An entrepreneur with extensive insurance industry experience had an executed LOI to acquire the Company. The sellers wanted a quick exit process so provided a four (4) week timeframe to consummate the transaction. The acquisition was structured with a combination of equity and SG debt.

The Solution: SG was supportive of the transaction given the Company’s diverse ARR base, mission critical product, profitability, and the contemporaneous equity contribution. SG structured a $4.5MM senior secured debt facility providing interest-only flexibility to support the Company’s planned ARR growth initiatives. SG was able to move quickly to meet the tight closing timeframe and the acquisition was completed as planned.

SG Credit Profile: SaaS

The Company: A leader in cloud adoption and management solutions. 

The Financing Situation: The Company was seeking non-dilutive growth capital to execute on its substantial pipeline. 

The Solution: SG was supportive of the deal due to the Company’s recurring revenue metrics, high retention rates, positive growth tailwinds, and strength of the management team. 

To learn more, please click here to view the full press release. 

SG Credit Profile: SaaS

The Company: A leader in channel management automation for enterprises selling through channel partners.

The Financing Situation: The Company was seeking capital for product development, to expand its team, and to execute on growth opportunities in its pipeline.

The Solution: SG structured a $1.5 million non-dilutive term loan supported by the Company’s recurring revenue base. SG was able to get comfortable based on the Company’s comprehensive product suite, ARR growth, strong SaaS metrics, and experienced management team.

SG Credit Profile: High Net Worth

The Company: A single-asset real estate holding company owned by a high net worth technology executive (“the Guarantor”).

The Financing Situation: The Guarantor agreed to acquire a lakefront residential land parcel in an emerging city. Although the Guarantor had the asset base to fund the purchase with equity, much of his net worth was tied up in fully vested stock options that had punitive tax consequences upon conversion. Additionally, the seller was fatigued and wanted to close in less than three (3) weeks, meaning conventional bank financing was not a viable option.

The Solution: SG underwrote the real estate as well as the outside personal assets of the Guarantor. Given the location and liquidity of the underlying real estate collateral, coupled with the strength of the Guarantor’s personal balance sheet, SG was comfortable providing a high LTV loan. SG moved quickly to meet the timing constraints and closed within three (3) weeks from executed term sheet.

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 or technology (SaaS) 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. 

SG Credit Profile: SaaS

The Company: A cybersecurity software company providing best in class security operations, compliance, and consulting services.

The Financing Situation: The Company was seeking non-dilutive growth capital to expand its cloud-based cybersecurity platform and customer reach.

The Solution: SG was able to get comfortable with the transaction due to the Company’s recurring revenue metrics, strong retention rates, management depth, and ongoing support from key investors.

To learn more, please click here to view the full press release.

SG Credit Profile: SaaS

The Target: Corporate travel and entertainment software, data integration, and business intelligence (BI) provider for large enterprises and travel management companies.

The Buyer: Enterprise software operating company backed by private equity.

The Financing Situation: The Buyer was seeking a debt facility to supplement the equity contribution made to purchase the Target.

The Solution: SG structured a $4 million term loan to support the closing of the acquisition. SG was able to get comfortable based on the Company’s recurring revenue, strong SaaS metrics, experienced management team, and the strength of the Buyer.