Scargo Hill Capital launched today to provide senior secured capital solutions in the lower middle-market across retail, consumer products and the broader supply chain.

The firm boasts a partnership of retail industry, commercial finance and asset management leadership with significant domain expertise and experience spanning multiple credit cycles. Scargo Hill is led by co-founders Andrew H. Moser, managing partner and CEO, Thomas J. Lynch, managing partner and chief risk officer, and Mark E. Gallivan, principal. The firm’s partnership includes strategic and lead investors, Schottenstein affiliate SB Capital Group and Stephen G. Miller, CEO of 360 Merchant Solutions.

“The ongoing credit challenges and widening gap across lower middle-market companies has made it very challenging for them to access adequate liquidity,” said Moser. “Scargo Hill has been created to provide a full range of senior secured capital solutions to a sector that our management team has been dedicated to serving for nearly 25 years.”

Scargo Hill was formed as an institutional asset management platform focused on providing investors with access to senior secured private debt that addresses an identified credit market dislocation in the industry’s lower middle market, especially among emerging growth retail companies and consumer wholesale brands.

Scargo Hill employs a rigorous underwriting process supported by in-depth collateral monitoring and financial analytic tools and resources rooted in sound credit disciplines and decades of relevant asset disposition experience, techniques and strategies.

“The Scargo Hill team has extensive historical experience valuing merchandise as it moves through the supply chain and is positioned to provide optimal asset yield and enhanced availability to its borrowers,” said Miller. “360 is privileged to be a vital part of the future of this specialized lending group.”

“In the years since the financial crisis, private debt has further emerged from a niche market to become a significant institutional asset class and the demand from both investors and borrowers continues to grow,” said Lynch. “The persistent dislocation in the credit market for lower middle-market companies has created a compelling investment opportunity. Scargo Hill’s portfolios will be constructed utilizing a manufacturing versus selection process, meaning we will source, underwrite, monitor and intervene proactively when necessary to protect and safeguard invested capital.”