MidMark Financial Group, along with The Cynosure Group and The 4612 Group, announced a significant closing of $113 million in growth capital to acquire majority control of SG Credit Partners, Inc., in partnership with management. This investment is the initial phase of a plan to build SG Credit into a leading multi-product opportunistic credit platform. As part of the investment, industry veterans Andrew Hettinger, Lon Brown and Christopher Koenig will join the firm as Chief Investment Officer, Senior Credit Advisor and Managing Director, East Coast, respectively. Based in Santa Monica and Newport Beach with regional offices around the country, SG Credit Partners helps middle-market companies seize opportunities and solve challenges when traditional banks, non-bank lenders, and larger funds cannot due to regulatory, timing, funding, or size constraints.
SG Credit focuses on structured credit solutions in several niches including structured cash flow term loans, technology/recurring revenue, and private banking. The new investment provides the capital and resources necessary to fully fund SG Credit’s business plan and provide national scale to partner with lenders across the country. “We are filling a void for shorter-term capital needs requiring speed to close and creative structuring that do not fit with traditional mezzanine and uni-tranche lenders,” said Marc Cole, co-founder and CEO of SG Credit Partners.
“We picked MidMark, Cynosure, and 4612 given their longstanding success investing in innovative specialty finance businesses and proven ability to create value. Their investment solidifies our capital base and will further accelerate our goal to be the market leader in solving $1 to $10 million capital needs for mostly non-sponsored businesses. Our structured cash flow, technology, and private banking lending business became so successful that the time had come to bring on institutional capital,” said Marc Cole.
“SG Credit Partners is senior-lender-centric, meaning many of our referrals come from banks and non-bank lenders. Our goal is to provide a customized non-dilutive solution to their clients. We look forward to the next stage in our firm’s growth and to collaborating with our new investor group. Capital is no longer a constraint and the investors’ disciplined underwriting and attractive capital base make them the ideal partner for SG Credit,” said Charlie Perer, Head of Originations.
“We are excited to partner with SG Credit as we work together to build a national platform of opportunistic credit products,” said MidMark CEO, Mack McNair. “Marc and Charlie’s relationship-based approach to originations and client partnership fits well with our investor group’s philosophy, and having Andrew join as CIO will be a game changer for the company as SG focuses on its core product and considers opportunities in adjacent markets. Likewise, adding Lon as a Senior Advisor will be invaluable to the evolution of the organization. We look forward to extending our experience growing emerging specialty finance companies by bringing management, technology, and capital to support SG Credit’s creative approach to the market.”
McNair will serve as Chairman alongside board members, Marc Cole (CEO), Andrew Hettinger (CIO), Lon Brown, Jeff Brown, Mark Oligschlaeger (Cynosure), and JT King (4612).