NXT Capital is celebrating a decade of providing structured financing solutions to the middle market and investment opportunities in this asset class to institutional investors. Since its 2010 founding by former leaders of Merrill Lynch Capital and Heller Financial, NXT has closed more than 740 transactions that represent over $25 billion of originations. The company has also created a robust asset management platform with more than $11 billion of capital under management. NXT was acquired by ORIX USA in 2018.
“I’m very proud of NXT Capital’s growth into a market leader,” said Robert Radway, Chairman and CEO. “We hit the ground running in 2010, thanks to a team that had extensive experience working together. This helped us to quickly establish an effective direct origination capability and strong deal execution designed to take advantage of opportunities in an evolving market.”
NXT originates loans through its Corporate Finance and Real Estate Finance groups. The Corporate Finance group provides senior secured financing solutions to companies with stable cash flows, experienced management teams and proven private equity sponsors. Since 2010, Corporate Finance has closed more than 420 new platform deals that represent $19.8 billion in commitments from more than 190 private equity sponsors.
NXT’s Real Estate Finance group is active in major markets throughout the United States across a broad range of property types and provides non-recourse first mortgages up to $75 million to experienced real estate investors. Real Estate Finance has closed more than $5.9 billion in commitments representing over 250 loans since 2010.
Among its many accomplishments, NXT Capital helped establish middle-market direct lending as a distinct institutional investment asset class. In the last 10 years, NXT’s outreach and education efforts have built a management platform that includes levered and unlevered funds, separately managed accounts and CLOs. Today, NXT Capital has $11.3 billion of capital across 19 programs. Investors include public and private pensions, endowments and foundations, insurance companies and asset managers.
“Investors have become increasingly sophisticated in evaluating potential middle-market managers and the asset class,” said Radway. “We are grateful to have had many repeat investors and to see new investors recognize the value of our business.”
Radway credits a broad team for NXT’s successful first decade. “We have an outstanding group of dedicated professionals whose commitment makes a difference every day,” he said. “We look forward to working together to serve our many clients and build on NXT Capital’s growth and success.”
NXT Capital is a leading provider of structured financing to the U.S. middle market. With over $11 billion of capital under management, NXT Capital provides a full range of structured financing solutions on a direct basis through its Corporate Finance and Real Estate Finance groups. NXT Capital also manages capital for third parties through its asset management platform and provides investors with proprietary access to primarily first lien senior secured loans that are not broadly traded or otherwise generally available without a loan origination platform. Investment platform includes levered and unlevered funds, separately managed accounts and CLOs. NXT Capital’s investor base includes public and private pension plans, insurance companies, endowments, foundations and other institutional investors. NXT Capital Investment Advisers, LLC, an affiliate of NXT Capital, is registered with the SEC as an investment adviser. With more than 120 professionals, NXT Capital is based in Chicago with locations in Atlanta, Dallas, Los Angeles, Nashville, New York and Phoenix.