Kapitus, a provider of financing for small and medium sized businesses, announced the closings of a $100 million asset-backed securitization (ABS) and a $30 million investment-grade corporate note financing. These closings bring Kapitus’ total debt facilities to $540 million. Kroll Bond Rating Agency served as the rating firm for the ABS facility and Egan-Jones served as the rating firm for the corporate note transaction. The company plans to use the financing to increase its funding capacity for small businesses – providing a place where businesses can obtain much needed working capital in this volatile economic environment.

 “Recent bank failures have compounded an already uncertain economic environment, leading creditors to more deeply scrutinize how and where they invest. The closing of these facilities is a testament to the strength of Kapitus, the prominent role we play in the alternative financing space, and our ability and commitment to meeting the demands of both our stakeholders and our customers,” said Andrew Reiser, Chief Executive Officer of Kapitus. “The world is seeing macro-economic trends that indicate impacts of the same order of magnitude that we saw during the great recession. As we did 15 years ago, Kapitus will continue to demonstrate significant leadership in the industry. Completing this financing is just one of many steps we are taking to further support businesses with access to capital during these volatile times.”

Committed to helping the small business community through fast and efficient funding alternatives, Kapitus offers a variety of financing products to meet the unique needs of each individual company. Since its founding in 2006, Kapitus has provided $5 billion in growth capital to over 50,000 small businesses. In 2022, Kapitus increased its funding capacity by nearly $140 million and the company is on track to outpace that growth this year.

“We greatly appreciate the ongoing support we receive from a diversified group of leading credit investors,” said Ben Johnston, Chief Operating Officer of Kapitus. “In an era of credit tightening, increased regulatory scrutiny, and rising cost of capital across the banking sector, we see a significant opportunity to help our small business customers obtain the capital they need to grow. The economic conditions we saw in 2008 cemented non-bank financing organizations as a mainstay in the financing landscape, and we stand ready – with the support of our financial partners – to provide small businesses with the capital they need to succeed.”

Guggenheim Securities served as sole structuring advisor for the $100 million ABS notes, while Brean Capital, LLC served as the company’s exclusive financial advisor and sole placement agent for the $30 million corporate note.