SLR Investment Corp. announced that on September 27, its wholly-owned portfolio company, SLR Business Credit (“SLR-BC”) acquired an asset-based factoring portfolio and operations from Webster Bank’s Commercial Services Division (“Webster”) in an asset purchase that includes a team of professionals and a seasoned portfolio. The factoring business specializes in providing financing solutions to middle-market companies. SLR-BC is a commercial finance company that specializes in making senior secured asset-based loans and factoring to small and medium-sized companies with borrowing needs of $100,000 up to $100 million.
The approximately $115 million portfolio acquired from Webster is diversified with loans to long-standing customers. This acquisition increases SLR-BC’s exposure to first lien senior secured collateralized assets.
The addition of the asset-based factoring business, along with its team, further enhances SLRC's diversified specialty finance platform. The Company has a proven history of underwriting and integrating strong lending platforms that are seeking long-term, stable capital and synergies with a new strategic partner.
“The addition of this business marks our fourth acquisition under the ownership of SLRC. We are pleased with the integration and performance of our prior acquisitions and are excited to expand our portfolio and product offering with this attractive factoring platform,” said Jeff Goldrich, CEO of SLR-BC. “The Webster business has a proven track record of originating and managing factoring assets.”
“This acquisition furthers SLRC’s strategy of capitalizing on the shifting commercial bank landscape to expand its specialty finance platform,” said Mitch Soiefer, Partner and Head of Lender Finance at SLR Capital Partners, LLC. “As commercial banks continue to retreat from certain niche markets, our pipeline of attractive investment opportunities has grown. Our expertise, coupled with our stable, long-term capital base, makes us an attractive partner for commercial-bank owned business lines.”
Hovde Group served as exclusive financial advisor to Webster in connection with the transaction.