Callodine Group (“Callodine”), an asset management firm focused on yield-oriented investment strategies, announced that it has entered into a definitive agreement to acquire the loan portfolio and assume the employees and operating costs of Gordon Brothers Finance Company, LLC (“GBFC”). In connection with the closing of the transaction, GBFC has changed its name to Callodine Commercial Finance (“CCF”).
Callodine’s acquisition represents approximately $400 million in assets and is being funded in part by new strategic financing from KKR, East Asset Management and Axar Capital Management. BlackRock Capital Investment Corporation (“BCIC”), the most recent majority owner of the business, will also remain a financial partner to CCF.
“BCIC is pleased to have partnered with Gene and his team as a major shareholder to launch the business in 2014 and expand its capabilities,” said James E. Keenan, Chairman and Interim CEO of BCIC. “We believe this transaction is a positive next step in the company’s evolution and look forward to benefitting from the team’s ongoing success as a continued investor in the company.”
“We are deeply appreciative of BCIC’s past and continuing support,” said Gene Martin, CEO of Callodine Commercial Finance. “The team and I are excited to join the Callodine platform and continue our mission of delivering creative capital solutions to clients in concert with our new financing and operating partners.”
“We are thrilled to welcome aboard Gene and the rest of the team,” said James Morrow, founder and CEO of Callodine Group. “At Callodine, we believe that a significant opportunity exists to provide asset-based financing solutions to the middle market. We look forward to working closely with Gene’s team and our financing partners to capitalize on this growing market opportunity.”
“We are pleased to provide financing to support Callodine and the launch of its Callodine Commercial Finance platform,” said Daniel Pietrzak, Partner and Co-Head of Private Credit at KKR. “This investment builds on KKR’s strategy of backing platforms with strong management teams that can provide us with scaled exposure to underserved segments of the asset-based finance market.”
Callodine expects to complete the full rebranding of the business over the coming weeks. Further terms of the transaction were not disclosed.
Aviditi Advisors served as sole financial advisor to Callodine on the transaction.