Rosenthal & Rosenthal recently completed several transactions totaling $13 million, including an asset-based lending deal and three deals from its newest division, Pipeline, which serves e-commerce and direct-to-consumer businesses. The funding and financing facilities will help to address clients’ working capital needs and support various growth opportunities.
First, a mitigation and restoration company serving communities up and down the East Coast was referred to Rosenthal by Rick Szekelyi, managing director of Phoenix Management Services, a third-party consultant. Rob Martucci, executive vice president and national underwriting manager for ABL at Rosenthal, together with his late Rosenthal colleague, Al Foster, worked with the company’s ownership and management teams to get comfortable with the deal by looking at percentage of completion and progress billings. Rosenthal developed a borrowing base that worked for both parties, providing a $5 million revolving line of credit against the company’s accounts receivables.
“This non-traditional ABL structure is a perfect example of how clients can benefit from Rosenthal’s creativity and flexibility to get the working capital they need to run and grow their businesses,” Martucci said.
Next, an importer of high-performance workwear operating primarily in the direct-to-consumer space was introduced to Rosenthal by one of the brand’s private equity investors. Although an early-stage seed investor had guaranteed the company a line of credit from a small local bank, the client soon realized the funding would not be sufficient to support the business moving forward. Because Rosenthal had successfully financed other portfolio companies for the private equity firm in the past, Pipeline was brought in to provide $3 million in funding.
Then, when a men’s personal care products brand expanded into the wholesale space to supplement its direct-to-consumer business, the company began looking for a lender to grow with it. After learning that its existing lender was not able to offer the funding it needed, one of the company’s venture capital investors introduced it to Rosenthal’s direct-to-consumer division. Pipeline provided the client more flexibility than its existing lender and provided $2.5 million in funding to support future growth.
Lastly, a sporting goods business selling modern products via direct-to-consumer channels was seeking an alternative to the revenue-based financing arrangement it already had in place. The company’s existing financing was costly and ineffective for its business and did not have the capability to support the company’s recently launched wholesale businesses, which were supplementing its direct-to-consumer channels. One of the brand’s venture capital investors introduced the management team to Rosenthal to explore financing solutions through Pipeline. Rosenthal ultimately offered a more flexible solution for the client, providing $2.5 million in funding.
“These three Pipeline transactions perfectly represent our specialized and customized offerings for fast-growing direct-to-consumer brands as well as Rosenthal’s expertise providing the liquidity and incremental working capital companies need to scale and grow their businesses,” Andrew Barone, senior vice president at Rosenthal and director of sales for Pipeline, said
