CrowdOut Capital, a non-bank lender for lower middle market businesses, completed the initial funding of a $20 million facility to Lane Gate Advisors. The facility is structured as a senior secured term loan.

“We are thrilled to add a great borrower to our loan portfolio,” Alexander Schoenbaum, CEO of CrowdOut Capital, said. “Lane Gate has a team of experienced life settlement investors with a differentiated, niche strategy. CrowdOut is excited to be invested in such a quality, non-correlated asset space.”

Founded in 2015, CrowdOut Capital utilizes both a traditional fund as well its proprietary tech-enabled marketplace to finance corporate loans that range from $4 million to $50 million.

“Life settlement investors are having a difficult time finding traditional financing,” Bryan Cooper, co-founder, managing principal and co-chief investment officer of Lane Gate Advisors, said. “CrowdOut has been a great partner and provided flexible growth capital that can scale with us as we grow our portfolio.”

Lane Gate Advisors is a boutique investment management practice focused on certain segments of the specialty finance market.