MidMark Financial Group, The Cynosure Group and The 4612 Group have invested $113 million in growth capital to acquire majority control of SG Credit Partners, in partnership with management.
This investment is the initial phase of a plan to build SG Credit into a leading multi-product opportunistic credit platform. As part of the investment, industry veterans Andrew Hettinger, Lon Brown and Christopher Koenig will join the firm as chief investment officer, senior credit advisor and managing director, East Coast, respectively.
Based in Santa Monica and Newport Beach, CA with regional offices around the country, SG Credit Partners focuses on structured credit solutions in several niches including structured cash flow term loans, technology/recurring revenue, and private banking. The new investment provides the capital and resources necessary to fully fund SG Credit’s business plan and provide national scale to partner with lenders across the country.
“We are filling a void for shorter-term capital needs requiring speed to close and creative structuring that do not fit with traditional mezzanine and uni-tranche lenders,” said Marc Cole, co-founder and CEO of SG Credit Partners.
“We picked MidMark, Cynosure, and 4612 given their longstanding success investing in innovative specialty finance businesses and proven ability to create value. Their investment solidifies our capital base and will further accelerate our goal to be the market leader in solving $1 million to $10 million capital needs for mostly non-sponsored businesses. Our structured cash flow, technology, and private banking lending business became so successful that the time had come to bring on institutional capital,” added Cole.
“SG Credit Partners is senior-lender-centric, meaning many of our referrals come from banks and non-bank lenders. Our goal is to provide a customized non-dilutive solution to their clients. Capital is no longer a constraint and the investors’ disciplined underwriting and attractive capital base make them the ideal partner for SG Credit,” said Charlie Perer, Head of Originations.
“We are excited to partner with SG Credit as we work together to build a national platform of opportunistic credit products,” said MidMark CEO, Mack McNair.
McNair will serve as chairman alongside board members, Marc Cole (CEO), Andrew Hettinger (CIO), Lon Brown, Jeff Brown, Mark Oligschlaeger (Cynosure), and JT King (4612).
MidMark Financial Group, focuses on buying or building specialty finance businesses and investing in special situations involving unique structured credit/equity transactions.
The 4612 Group is an Atlanta-based investment firm that invests directly into operating businesses on behalf of large family offices.
Tracing its roots to the Eccles family of Utah, The Cynosure Group is an independent alternatives asset manager and advisor that makes long-term investments on behalf of families, foundations, and other like-minded institutions.
