Brentwood Associates announced it has completed a second recapitalization of its portfolio company, The Teaching Company Holdings, Inc. This recapitalization, the second in the last 12 months, was financed through a $170 million credit facility. Brentwood has realized a return of capital in excess of its original investment, while leaving its ownership stake unchanged.

Ares Capital Corporation provided the incremental financing in the form of a delayed draw term loan to support the recapitalization transaction. The Senior Secured Loan Program, jointly managed by Ares Capital and an affiliate of GE Capital, provides existing term loan financing for the company. GE Capital continues to be the administrative agent on the existing credit facilities.

The Teaching Company is a developer and marketer of proprietary, premium-quality, university-level courses targeted at life-long learners. The company markets its courses under “The Great Courses” brand and currently offers more than 390 courses, spanning more than 5,600 hours of content across ten subject categories.

Under Brentwood’s ownership, management has expanded the company’s direct marketing efforts, made significant investments in branding and e-commerce, and continued to enhance the visual richness and production quality of the content library. The company also recently launched its new digital distribution platform for content delivery, which currently offers digital downloads and will offer streaming service in the near future.

Brentwood Associates is a consumer-focused private equity investment firm with over $650 million of capital under management and a thirty-year history of investing in leading middle-market growth companies.

The Senior Secured Loan Program was formed in December 2007 to invest in the senior secured debt of middle-market companies.