Channel Partners Capital announced two significant developments to support the company’s growth initiatives. Channel has closed a significant equity investment from funds advised by Elliott Management Corporation, a multi-strategy private investment firm with approximately $35 billion in assets under management. Elliott’s equity investment will provide Channel with new growth capital to support further expansion of Channel’s portfolio lending capabilities.
Elliott’s investment also facilitated a recapitalization with a new expandable asset-backed credit facility led by CIBC Bank USA.
“These agreements both endorse and support our rapid growth strategy for the future, along with an increase in our equity and debt facilities to support $300 million in annual originations,” said Brad Peterson, CEO of Channel. “With these two strong financial partners, we’re expanding our investments in people, technology platforms and operational enhancements to better assist equipment finance companies in providing growth capital to their own customers.”
Farrukh Iqbal, investment professional at Elliott, said, “Channel has many attributes that we seek in our private specialty finance investing strategy, including a differentiated customer acquisition strategy, strong relationships with its customers and an analytical and disciplined approach to underwriting. With its new, flexible and efficient capital structure, Channel is positioned very well to capitalize on growth opportunities. We are excited to be partnering with the talented team at Channel to support the expansion of Channel’s products, lending channels and portfolio lending capabilities.”
Last year Channel, based in Minnetonka, Minn., was ranked among the Inc. 500/5000 fastest-growing private companies in the U.S. by Inc. magazine for the fifth straight year.
Along with replacing and expanding a credit facility that Channel signed in 2015, these two new agreements offer Channel improved financial flexibility and reduced costs.
Cadwalader, Wickersham & Taft LLP acted as legal advisor to Elliott. Eversheds Sutherland acted as legal advisor and Middlemarch Partners LLC acted as sell-side advisor to Channel.