FrontWell Capital Partners has launched as a private credit fund focused on providing transitionary senior debt financing to middle-market companies in the United States and Canada. FrontWell will begin operations immediately with committed seed capital of more than $350 million from a group of international investors.

Headquartered in Toronto, FrontWell offers creative, value-added financing solutions, including asset-based and cash flow loans, to maximize liquidity support for borrowers that are looking beyond traditional sources of capital. FrontWell plans to lend across industries to a variety of private companies that display balance sheet capacity, leveraging the team’s deep experience and a rigorous investment process to assess cash flow sustainability and net asset value. FrontWell principally lends to companies requiring liquidity to support business transitions, including turnarounds, restructurings, acquisitions and changes in ownership or control. FrontWell’s product offering includes senior secured term loans and revolving credit facilities. In addition, the current economic environment provides FrontWell with a unique opportunity to offer solutions in special situations that complement its core business, including bridge loans, rescue financings, secondaries, portfolio acquisitions, debtor-in-possession (DIP) financings, liquidity relief loans and structured loans.

FrontWell is led by Patrick Dalton as CEO, a credit industry veteran who previously served as founder and CEO of Gordon Brothers Finance Company and managed several businesses as senior partner of Apollo Global Management’s credit platform. John Ho, a finance executive with a proven 15-year track record, is CFO. Dalton and Ho are supported by a deeply motivated and committed team of credit professionals with decades of diverse experience lending across many industries and through multiple market cycles.

Dalton is an accomplished investment management executive with 30 years of investing experience, primarily in private credit markets. He has held senior leadership positions at leading financial institutions and overseen the origination and underwriting of more than $8 billion in loans.

In addition to founder and chief executive officer roles at Gordon Brothers Finance Company and senior partner and chief investment officer roles at Apollo Investment Management, Dalton was also interim CEO at Fifth Street Capital prior to its sale to Oaktree and a senior underwriter for Goldman Sachs’ Mezzanine Funds.

Ho is a finance executive with more than 15 years of public company experience in roles of increasing responsibility with a focus on corporate finance, financial reporting and internal controls. He was previously CFO of an ABL and specialty finance company and prior to that, held senior roles in the Brookfield Asset Management family of operating companies and Barrick Gold. Ho is a chartered accountant in Ontario and obtained his designation while articling at Ernst & Young LLP.

“We are thrilled to launch FrontWell and to capitalize on the significant market opportunity in front of us,” Dalton said. “As middle-market companies increasingly struggle to access credit amidst economic uncertainty, FrontWell is well positioned to provide flexible and responsive lending solutions through our true partnership approach, comprehensive product offering, and deep understanding of cash flows and net asset values. We look forward to begin deploying our capital thoughtfully and profitably and providing borrowers with the differentiated solutions required to sustain and grow their businesses.”

Ho said, “We are eager to partner closely with management teams looking beyond traditional sources of capital to address the unique cash flow demands of their businesses. We are pleased with our developing pipeline of new lending opportunities. Looking ahead, we are focused on executing our strategy with focus and discipline and expect to expand our investor base as we accelerate our firm growth.”