Merchant bank BDT Capital Partners has made a majority equity investment in equipment and accounts receivable finance company Commercial Credit.

With this transaction, Commercial Credit, one of the largest independent commercial finance companies, will be able to expand its equipment and accounts receivable financing businesses.

Commercial Credit President and CEO Dan McDonough commented, “We’re thrilled to partner with BDT. Their culture, way of doing business and long-term perspective mirror ours and their patient capital will support the growth of our company, the development of our people and our ability to deliver superior customer service in the years to come. We thank Lovell Minnick for their support over the past seven years and appreciate their dedication and loyalty to our business and employees.”

“We are excited to partner with Dan and his highly-experienced management team,” said Dan Jester, president of BDT Capital Partners. “Commercial Credit’s specialized equipment finance expertise, focus on credit quality and superior customer service have contributed to its strong results. Our long-term capital, combined with Commercial Credit’s differentiated approach to commercial lending, will provide a solid foundation for the company to continue helping its customers navigate business cycles, acquire equipment and scale their own businesses.”

The transaction is expected to close in the first quarter of 2019 and is subject to customary closing conditions. Keefe, Bruyette & Woods and Ardea Partners advised Commercial Credit in connection with the transaction.

Founded in 2004 and headquartered in Charlotte, NC, Commercial Credit, through its wholly owned subsidiaries Commercial Credit Group and Commercial Funding, provides equipment loans and leases to small and mid-sized businesses in the construction, fleet transportation, machine tool and manufacturing, and waste industries, and accounts receivable factoring in a variety of industries.

BDT Capital Partners provides family- and founder-led businesses with long-term, differentiated capital. The firm manages more than $9 billion across its investment funds and an additional $4.6 billion of co-investments from its global limited partner investor base.