As an increase in bankruptcy activity looms on the horizon, the debtor-in-possession market is becoming more competitive, especially as non-bank lenders are increasingly prepared to offer capital and go to the mat against larger bank lenders.
SG Credit Partners started a collateral-based lending division and hired Nathalie Butler as managing director of underwriting to lead the group.
Charlie Perer outlines an emerging trend of bank-owned asset-based lending divisions conducting business in a fashion similar to non-bank asset-based lenders while gaining an advantage due to the ability to price like a bank.
SG Credit Partners promoted Spencer Brown and Oren Moses to managing director roles and Carlos Tan to principal. Daniel Looker and Gerardo Mora also were promoted to associate roles.
SG Credit Partners promoted Spencer Brown to managing director while also opening a Colorado office. In Brown’s role, he will continue leading coverage efforts for originating and closing structured cash flow, collateral-based, recurring revenue and high net worth facilities in the Rocky Mountain and Southwest regions.
The quest for coast-to-coast asset-based lending shops has created an intensely competitive “frontier” in the lending environment. Charlie Perer examines this trend and concludes that hiring the right business development officer must be a top priority to succeed.
Asset-based lending can be an attractive business, but not every organization is built for it. Charlie Perer of SG Credit Partners outlines why some community banks were quick to seek ABL out and just as quick to exit the space.
SG Credit Partners hired John Todd (JT) as a managing director in Chicago. Todd previously worked for Alostar Capital Finance, CapitalSource, JPMorgan Chase and Wells Fargo Foothill.
An increasing number of commercial banks are creating ABL divisions. Yet, as Charlie Perer muses, these divisions are still playing second fiddle to C&I and not receiving referrals from their C&I colleagues, even when ABL might be a more appropriate product and not utilizing it will cause a client to exit. He explains that breaking down the silos between divisions will serve customers more effectively and keep them as clients.
SOFAs originated in the non-bank ABL sector as a way for independent firms to differentiate themselves from bigger banks. But, as Charlie Perer writes, with more and more bank-ABLS embracing SOFAs, it is the large institutional lenders that have been crowned the SOFA kings