SB360 launched Second Avenue Capital Partners as a lending platform specializing in asset-based loans for the broader retail and consumer product industry.
Second Avenue is a Schottenstein Affiliate, joining a portfolio consisting of retail and consumer businesses in the U.S.
“We’re excited about this new venture,” said Jay Schottenstein, chairman of SB360 Holdings. “Our deep roots and substantial holdings in retail and manufacturing give the Second Avenue lending experts insight into the operations of prospective clients. When you factor in our merchant perspective, we’re in a class unlike any other middle market lender.”
Industry executive Chris O’Connor will lead Second Avenue Capital Partners as company president. O’Connor brings more than 25 years of financial service expertise and leads a group of dedicated financial and lending executives. He comes to Second Avenue from Cambridge Trust where he served as senior vice president overseeing their asset-based lending vertical. Prior to that, he was a senior executive in several commercial finance and retail lending organizations.
Joining O’Connor as founding members of Second Avenue are Mark Gallivan, Andrew Prunier and Michael Sullivan.
Based in Boston, Second Avenue Capital Partners will provide financing solutions for companies in all segments of retail, consumer products and the broader supply chain. Targeting middle market transactions of $5 million to $35 million, the firm’s affiliations and financial foundation will be the basis for syndicating larger transactions.
The firm will develop financing solutions for working capital, to fund emerging growth opportunities, recapitalizations, seasonal and opportunistic financing, turnarounds, mergers and acquisitions and debtor-in-possession or emergence financing. Unlike other financing providers, Second Avenue does not require positive cash flow or historical earnings as a basis in its lending criteria.
The financing structures offered by Second Avenue will focus primarily on asset-based loans (revolving credit facilities), FILO advances and term loans. The firm will lend on a broad spectrum of eligible collateral assets including inventory, accounts receivable, machinery and equipment, real estate and select consumer brands.