Piper Jaffray Companies, an investment bank and asset management firm, announced that it has formed Piper Jaffray Finance, LLC, a wholly owned lending subsidiary that will provide committed debt facilities for middle-market clients based in North America.

Piper Jaffray Finance has been backed with $1.0 billion of equity commitments, with capital commitments from a group of investors including Piper Jaffray Companies. Piper Jaffray Finance will underwrite debt facilities for Piper Jaffray’s investment banking industry coverage universe, leveraging expertise across all of the firm’s verticals including healthcare, energy, consumer, industrials, technology, financial services, and agriculture, clean tech & renewables.

Piper Jaffray Finance will primarily underwrite middle-market loans between $75 million and $250 million for firms with EBITDA of $15 million or higher. The group will focus on first lien and stretch unitranche, but also has the ability to underwrite second lien and mezzanine loans, for sponsored and non-sponsored transactions.

Len Sheer, head of the Piper Jaffray & Co. capital advisory group, will serve as President of Piper Jaffray Finance, LLC. Along with executive team members Amrit Agrawal, James Chiarelli and Bob Lauria, the group brings over 75 years of combined experience in the middle market and debt capital markets.

Sheer said, “We are thrilled to launch Piper Jaffray Finance and we look forward to underwriting middle-market debt facilities for Piper Jaffray’s client base. This capability differentiates us from many of our competitors and translates into greater flexibility and speed – as well as a more streamlined deal process – through a trusted, established partner.”

“Adding this important capability represents a big step forward for our business and a major win for our clients,” added Scott LaRue, global head of Piper Jaffray investment banking. “Building on the momentum of our debt capital markets business, Piper Jaffray Finance will reap the benefits of working with our industry banking teams, while complementing our longstanding equity underwriting platform.”