Kapitus, a provider of small business financing, closed a $200 million asset-backed securitization (ABS). This new financing positions Kapitus for continued growth following a banner year in 2021, which saw the company’s highest funding volume in its 16-year history as the company continued to support and fund small businesses during the pandemic.
The facility, which has a three-year revolving period and is expandable to $600 million, was issued in three classes with the senior class earning a rating of “AA (sf)” by Kroll Bond Rating Agency. Guggenheim Securities served as sole structuring advisor and sole initial purchaser of the notes.
“It is our mission to provide every small business owner with the financing they need, when and how they need it,” Andrew Reiser, chief executive officer of Kapitus, said. “This substantial new funding provides us with greater capability to meet the demands of today’s small businesses, many of which are facing unprecedented economic uncertainty.”
The securitization demonstrates continued confidence in the strength of the Kapitus platform, which helps small business grow and prosper by offering financing solutions to meet their unique needs. The new financing will allow Kapitus increased flexibility to meet the needs of even more businesses, by allowing for longer duration repayment terms for its customers.
Founded in 2006, Kapitus is a direct lender and a marketplace built with an expansive network of lending partners, Kapitus has provided more than $3.6 billion in growth capital to more than 50,000 small businesses. Kapitus offers multiple financing products to small businesses including term loans, revenue-based financing, SBA loans, equipment financing and revolving lines of credit.