Super G Capital spun out its cash flow, technology and special situations lending division to create a pure-play, lower middle market specialty finance company, SG Credit Partners.
Community Banks: Darkhorse Competitors to Super-Regional and National Banks
November 1, 2018
A virus of acquisitions has enabled national and super-regional banks to bulk up over the last decade. Their smaller cousins — community banks — are often dismissed as warehouses for customer deposits and little more. Charlie Perer points out that when community banks acquire some some specialty lending platforms and pair them with deep hometown relationships, they can rival the big boys.
Drawing the Battle Lines: ABL Lenders and BDCs Engage in Tug-of-War Over Unitranche Loans
June 6, 2018
The simplicity and speed required to put together a unitranche facility has made it a popular option for borrowers and lenders. However, the façade of the split-lien solution is beginning to crack as first and second lien lenders find themselves in a tug of war over intangibles. Charlie Perer explores the ways lien fighting is imploding a once beautiful friendship.
Accurate Appraisals Ground Airballs But Will They Hold Up if a Recession Hits?
March 14, 2018
The soaring stock market has resulted in a frothy ABL market with competition at an all-time high and liquidations, outside of retail, at a low. Appraisals from the Big Four firms have held up. Charlie Perer looks into his crystal ball to envision the ABL scenario when the next recession hits.
The Changing Landscape of Non-Sponsor Finance
November 7, 2017
With too much capital chasing too few transactions, the middle market is ripe for change. Charlie Perer predicts an explosion of debt options for non-sponsor backed companies over the next 10 years. He notes that as non-banker lenders offer customers more service and flexibility, banks will respond by consolidating.
Following the Two-Second Rule: Building a Brand in the Finance Business
July 26, 2017
Brands like Cheerios, Toyota and Coca Cola have become ubiquitous. Once confined to radio, television and print publication ads, they now follow us as we surf the internet, peer out from the margins of our Facebook pages and insinuate themselves into our Twitter feeds. Charlie Perer argues that small lenders need to establish their own brands to compete with the industry giants. A strong brand can set a lender apart from the pack and establish an identity that will resonate with borrowers.
New Lending Structures Combat the Rise of Daily Debit Loans: The ABL Industry Strikes Back
March 24, 2017
Online lenders have made it quick and easy for business borrowers to access cash in a crunch. But these fintech lenders rely on algorithms and business plans, not bothering to check to see if the borrower has existing loans in place. If the client runs into difficulties, this can create headaches for the senior lender. Charlie Perer suggests that second lien lenders provide new products to enable borrowers to get a quick influx of cash controlled by the senior lender.
Hand-to-Hand Combat and the Need for Second Lien Financing
June 7, 2016
As credit tightens, middle market companies are being squeezed from all sides. Lenders offering short term second lien or stretch loans can work with ABL lenders to help these companies stay liquid.
