Daily News: May 4, 2012

Babson Capital Provides $20MM in Mezzanine Debt to ELT


Babson Capital provided $20 million of mezzanine debt and $2 million of equity to support The Riverside Company’s investment in the growth of its existing portfolio company, ELT Inc.

The financing from Riverside and Babson Capital helped fund San Francisco-based ELT’s merger with EthicsPoint Inc. and Global Compliance Services. The merger creates a leader in the governance, risk and compliance industry offering a deeply experienced and knowledgeable team of experts and a comprehensive set of technology and content solutions to a client base of nearly 6,500 organizations worldwide.

“With our long and successful track record of working together to meet the financing needs of middle-market companies, Babson Capital was the ideal partner for us in working through a complex transaction,” said Loren Schlachet, managing director with The Riverside Company. “We are excited about the prospects for ELT with its newly expanded skills and resources, and we look forward to working with Mark Reed and his team to help the combined company achieve its growth potential.”

“As an institutional asset manager with clients around the world and operations on four continents, Babson Capital is keenly aware of the increasingly complex and global nature of enterprise risk and compliance issues and the growing market for the kind of sophisticated solutions that ELT, EthicsPoint and Global Compliance Services offer,” said Mike Klofas, managing director and head of the Middle Market Finance Group for Babson Capital. “We are very pleased to join with our longtime partners at The Riverside Co. to support a leader in this burgeoning industry and look forward to supporting them on additional investments in the near future.”