Encina Capital Partners, an investment firm focused on specialized lending and leasing platforms, and an affiliate of certain funds managed by Oaktree Capital Management, L.P. (“Oaktree Investor”) announced that they have launched Encina Business Credit, LLC (EBC), a new independent asset-based lending (ABL) platform targeting middle-market borrowers in the U.S. and Canada that cannot obtain required financing from traditional banks.
Headquartered in Chicago, EBC provides revolving lines of credit and term loans ranging in size from $5 million to $50 million and secured by accounts receivable, inventory, machinery & equipment and real estate. The platform lends to both privately-owned (sponsor and non-sponsor) and publicly-traded companies across a wide range of industries, including manufacturing, retail, automotive, oil & gas, services, distribution and consumer products. Borrowers use loan proceeds to fund working capital, acquisitions, refinancings, growth, restructurings/turnarounds, debtor-in-possession (DIP)/exit financings and other special situations. Positive cash flow is not a requirement.
EBC will be led by Marty Battaglia, a 30-year industry veteran who has been instrumental in building highly successful ABL platforms at PPM America and LaSalle Business Credit. Battaglia is joined by two senior business development executives, each of whom has 20+ years of relevant experience. Tron Allen, based in Houston, will lead origination efforts in the Southwest Region, while Jim Kelly will lead origination efforts in the Midwest Region from St. Louis. Janet Klinger, who is based in Chicago along with Battaglia, brings 30 years of experience to her role of Vice President and Operations Manager.
EBC is already underwriting potential transactions and expects to announce in the coming weeks numerous additional hires in originations and risk management.
In addition to representatives from Encina Capital and Oaktree Investor, EBC’s Board includes two former officers from General Electric Company – Paul Bossidy and William Brasser. Bossidy is the former CEO of GE Commercial Equipment Financing, which was the world’s largest equipment finance company with approximately $100 billion in assets and $1.2 billion in net income. Brasser was previously Chief Risk Officer at GE Capital, Americas, where he served as co-head of the credit and risk function for a $90 billion portfolio in North America. Bossidy and Brasser are both Senior Advisors to Encina Capital.
In connection with EBC’s launch, Battaglia said, “I’ve wanted to launch a platform like this for some time, but the stars haven’t aligned until now. With Encina Capital and Oaktree Investor as financial partners, we have the financial wherewithal to build a large, diversified portfolio while retaining the flexibility to provide our borrowers with customized solutions that address their needs. I also feel fortunate that my team and I will have access to industry heavyweights like Paul Bossidy and Willie Brasser for strategic and operational support.”
Andrew Salter, the CEO of Encina Capital and Chairman of EBC, and Brian Laibow, Managing Director at Oaktree, added, “We are excited to partner with an executive of Marty’s caliber to build a well-capitalized, non-bank ABL platform that differentiates itself through a consultative and solution-oriented approach to working with customers to help them achieve their objectives.”
Encina Capital Partners, LLC is a Los Angeles-based investment firm focused on specialized lending and leasing platforms. The firm’s principals – Andrew Salter (Founder and CEO) and Jason Wolff (CIO) – seek to build market-leading companies that recruit the best talent and deliver outstanding results.
Oaktree is a leader among global investment managers specializing in alternative investments, with $97 billion in assets under management as of December 31, 2015. The firm emphasizes an opportunistic, value-oriented and risk-controlled approach to investments in distressed debt, corporate debt (including high yield debt and senior loans), control investing, convertible securities, real estate and listed equities. Headquartered in Los Angeles, the firm has over 900 employees and offices in 17 cities worldwide.