IBS Enters ABL Market With Capital Banking Solutions Agreement
Fort Lauderdale-based private equity firm IBS Investment Bank, a division of Institutional Banking Services CORP (IBS) announced its $25 million agreement to form a strategic partnership with accounts receivable financier and servicer Capital Banking Solutions (CBS) and affiliate Capital Funding Solutions (CFS).
On the heels of this announcement, the CBS and CFS will be actively seeking to provide small and middle-market businesses with secured, asset-based lending between $1 million and $25 million across the continental United States.
The partnership positions the companies to target what has been a void in small to lower middle market lending. Executives at CBS and CFS also anticipate taking on the role of assisting community banking executives in combating deteriorating net interest margins, interest rate risk and asset diversification challenges.
CFS has been a leader in the accounts receivable finance space since 2003 and IBS has been actively working to expand its loan offering by creating additional revenue opportunities.
“Having fulfilled our recent strategic objectives we embarked on a thorough review of our options to enter the ABL market and determined without reservation that this partnership is in the best long-term interests of our shareholders, clients and the communities that we serve,” said IBS chairman and chief executive officer Jason Jackson.
The combination will strengthen CBS’s position in the asset-based lending space by adding significant resources which are typically dedicated to the private equity community.
“IBS is the ideal partner to take what we have built to the next stage,” said Greg Curly, president of CFS and CBS, adding, “The combination of IBS’s access to capital, entrepreneurial culture and savvy professionals, coupled with CFS’s expertise, reputation and track record, will create an added value in the marketplace that will accelerate the growth of both enterprises going forward.”
For more information on IBS, click here.
For more information about Capital Funding Solutions, the affiliate of Capital Banking Solutions, click here.