First Eagle Alternative Credit added asset-based lending solutions to its direct lending platform and appointed industry veterans Larry Klaff and Lisa Galeota to lead the initiative.

Klaff and Galeota joined First Eagle from Gordon Brothers Finance Company, a majority-owned portfolio company of BlackRock Capital Investment, where they worked together and at its predecessor firm for more than 13 years. During that time they sourced, originated and structured asset-based facilities valued at more than $1 billion across a variety of industries. They will be based at First Eagle’s Boston office and will report directly to Chris Flynn, president of First Eagle Alternative Credit.

“The expertise Larry and Lisa bring in asset-based lending and their deep understanding of how these assets are valued and trade is a valuable and complementary addition to our direct lending platform. We are excited to welcome them to First Eagle as we continue to pursue select opportunities to expand our lending solutions,” Flynn said. “We believe asset-based lending solutions will continue to be in demand as companies look for sources of additional liquidity for their working capital, inventory, real estate, machinery and equipment, or intellectual property.”

Klaff, who joined First Eagle as a senior managing director and head of asset-based loans, will serve on the investment committee of the firm’s direct lending platform for all asset-based loans. Previously, Klaff worked at Gordon Brothers Finance Company and its predecessor firm, Gordon Brothers Group, for almost 25 years, and was most recently responsible for sourcing, originating and structuring new asset-based lending investments. He is a board member and past president of the New England chapter of the Secured Finance Network (formerly known as the Commercial Finance Association), is currently an executive board member of the national SFNet, a board member and past president of the Northeast chapter of the Turnaround Management Association and a director of the national TMA.

Galeota, who joined as a managing director at First Eagle, co-headed the underwriting and portfolio teams at Gordon Brothers Finance Company and sat on the investment committee. She is a past board member of the Northeast chapter of the TMA and serves on the board of the Hockomock Area YMCA.

“We are excited to join First Eagle Alternative Credit’s $23 billion platform and look forward to collaborating with the team as we develop the asset-based lending operations,” Klaff and Galeota said in a joint statement. “We believe there is significant opportunity for First Eagle to provide highly structured and flexible $10-50 million loans to companies with valuable assets that can be monetized to provide liquidity solutions to companies on both a long and short term basis.”

First Eagle Alternative Credit is an alternative credit investment manager for both direct lending and broadly syndicated investments through public and private vehicles, collateralized loan obligations, separately managed accounts and co-mingled funds.