LBC Small Cap, an affiliate of LBC Credit Partners, recently provided financing solutions to support the growth of two U.S.-based lower middle market companies.
LBC Small Cap provided a secured mezzanine investment to support the acquisition of SIB Fixed Cost Reduction (“SIB”) by O2 Investment Partners.
Founded by Dan Schneider in 2008 and headquartered in Charleston, South Carolina, SIB is a leading provider of cost reduction services providing invoice analysis, vendor negotiation, and cost monitoring over numerous expense categories for customers across a variety of end markets. O2 Investment Partners is a Midwestern-based private equity firm that seeks to acquire majority interests in lower middle market B2B services, technology, and select niche industrial companies. O2 invests in businesses with earnings growth potential and a clear path to the creation of shareholder value.
Additionally, LBC Small Cap provided senior secured credit facilities and an equity co-investment to support the recapitalization of Breakout EDU by Cascadily LLC, along with key members of management. LBC Small Cap served as Agent for the senior secured credit facilities.
Breakout EDU is based in California and was founded in 2015 by James Sanders, Adam Bellow, and Mark Hammons. Breakout is an immersive learning games platform that brings the challenges of an escape room to the classroom through an innovative physical game kit and complementary digital game platform. Breakout EDU has developed over 1,600 standards-aligned games for use in K-12 classrooms across the United States. Cascadily LLC is a Minnesota-based, independent private equity sponsor that invests in successful education-related businesses in the middle market. As part of the transaction, Joe Cotter, co-founder of Learners Edge, joined the Company’s board of directors to assist the management team in executing its next stage of growth.
Separately, LBC Small Cap announced the addition of Chris Weidner to the investment team as a Senior Associate. He is responsible for working with senior investment professionals to underwrite and execute new investments while assisting with monitoring existing portfolio investments. Prior to joining LBC Small Cap, he worked in Corporate Strategy at Comcast NBCUniversal and as an investment professional at Boathouse Capital.