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Good Morning Everyone

This week's top deals plus:
💚 Winners & Losers (AI/Enterprise Software and Healthcare/Biotech rule)
🎯 Tips For Borrowers (Convergent Collateral, Strategic Partnerships, and ESG/ROI)
🔄 Opportunities for Brokers, Lenders, Family Offices, M&A, PE Firms, & AM Firms
💎 New Loan Programs (Apollo/Standard Chartered and BMO/Canal Road Group)

Let’s dive in.

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I hope you find value in today’s newsletter if:

1) You want to know what active Growth Cap and ABL lenders are mainly financing
2) You want innovative insights/strategies to secure Growth Cap and ABL debt financing.
3) You seek active Growth Cap and ABL lenders to close your next deal.

Bridge Loan Guy
Top Loans of the Week

Top Growth Cap/ABL Lenders
Refinance & Growth: JPMorgan Chase, WhiteHawk Capital Partners, Citi, TPG Angelo Gordon, Oberland Capital Management, and Trinity Capital
Working Capital: Siena Lending Group, Huntington Business Credit, MidCap Financial, and Amerisource Business Capital
Acquisition Capital: Second Avenue Capital Partners, Abacus Finance, Monroe Capital, NXT Capital, Stellus Capital Management, and TPG Twin Brook
ABL/Factoring: eCapital, Crown Partners, Legacy Corporate Lending, Marco, and nFusion Capital

Largest single deal: $5B for Databricks, featuring direct lenders like Blackstone, Apollo & Blue Owl

Number of states involved: ~20 across life sciences, tech, and insurance corridors

Sectors financed: Biopharma (oncology, RAS/MAPK-driven therapies), Enterprise Software (AI & data analytics), Insurance, Medical Manufacturing, Consumer Tech

Growth Capital Loans
◾ Databricks (San Francisco, CA): $5 Billion SOFR + 4.5% Loan from Blackstone, Apollo, and Blue Owl
◾ Nephron Pharmaceuticals (West Columbia, SC): $350 Million Loan from WhiteHawk Capital Partners
◾ Goosehead Insurance (Westlake, TX): $300 Million SOFR + 3.5% Loan from JP Morgan
◾ Brex (San Francisco, CA): $235 Million 2-year Loan from Citi & TPG Angelo Gordon
◾ Verastem Oncology (Boston, MA): $150 Million 6-year I/O Loan from Oberland Capital
◾ Inhibrx Biosciences (La Jolla, CA): $150 Million 5-year Loan from Oxford Finance
◾ Advanced Power (Boston, MA): $100 Million Loan from Nomura Securities

Asset-Based Loans
◾ eCapital provides $35 Million Factoring Facility to Global Logistics Provider
◾ Crown Partners Secures $30 Million Senior Debt ABL Facility for Industrial Manufacturer
◾ 888VoIP (Orchard Park, NY): $25 Million ABL Facility from Legacy Corporate Lending
◾ Marco Provides $10 Million ABL Facility to Pharmaceutical Distributor
◾ nFusion Capital Provides $8 Million Factoring Facility to Custom Labels & Printing Firm

🏆 Winners 
◾ AI & Enterprise Software: Soaring demand for data analytics and AI-driven solutions has lenders lining up—Databricks is prime proof.
◾ Healthcare/Biotech Expansion Plays: FDA approvals or near-approvals create tangible catalysts, letting firms secure flexible credit with milestone-based expansions.
◾ Asset-Based Distribution & Manufacturing: strong demand for asset-based deals in critical industries

❌ Losers 
◾ Traditional Bank-Only Borrowers: Multiple companies shifting from traditional bank facilities to alternative lenders or hybrid structures, reflecting tighter bank lending standards and the need for more flexible terms
◾ Companies Without Strong Recurring Revenue: Firms lacking predictable revenue streams face higher rates and shorter terms, as evidenced by several bridge loans with strict covenants
◾ Sub-Scale Operations: Smaller companies without institutional backing see limited options and higher costs, particularly in competitive sectors like specialty finance and distribution

📝 Current Tips For Borrowers

1. Build a "Convergent Collateral" Package

   Take a page from WhiteHawk's Nephron deal. Blend traditional assets with IP and brand value. Show lenders how your tangible and intangible assets create a stronger security package together than apart.

2. Leverage Strategic Partnerships

   Follow Verastem's IQVIA playbook: Get market leaders to validate your story. One strong strategic partner can slash your borrowing costs by convincing lenders you're a safer bet.

3. Make ESG Pay for Itself

   Link sustainability initiatives directly to cost savings and improved cash flow metrics. Show lenders how green initiatives translate into better debt service coverage ratios and strengthen your cash flows - it's about making environmental responsibility financially rewarding.

💡 Opportunities

1. Referral Partners for Brokers 
   ◾ IT consultants and managed service providers who are helping traditional businesses modernize. These folks see the transformation happening before anyone else does.
   ◾ Healthcare-focused CPAs and medical equipment suppliers. They know which practices are growing and which owners are thinking about expansion or exit
   ◾ Customs brokers and warehouse automation consultants. These folks are on the front lines of supply chain transformation.
   

2. Financing Opportunities for Lenders
   ◾ AI-Enabled Enterprise Software
   Why It Works: Predictable ARR, high margins, sticky customer base
   Similar Target: Snowflake - same profile of high-growth, enterprise-focused SaaS
   Pro Tip: Look for 70%+ gross margins and enterprise customer concentration
   ◾ Specialty Manufacturing 
   Why It Works: Hard assets plus contracts with major OEMs
   Similar Target: Martinrea International - an automotive supplier with a strong asset base
   Sweet Spot: Look for tier-1 supplier relationships
   ◾ Tech-Enabled Service Providers
   Why It Works: Recurring revenue plus traditional assets
   Similar Target: RingCentral - similar business model evolution
   Key Metric: Watch for technology-driven margin expansion
   

3. Opportunities for M&A Investment Bankers
   ◾ Opportunity to roll up specialized enterprise software providers that serve traditional industries.
   Why It Works: Think of it as building a modern-day Salesforce - not by creating new products, but by assembling best-of-breed solutions in underserved verticals.
   Referral Partners: Enterprise software consultants, Cloud migration specialists, and Industry-specific IT consultants.
   ◾ Companies that test and validate new technologies across all sectors.
   Why It Works: Every new technology needs testing and validation, high barriers to entry through certification requirements, sticky customer relationships, and natural expansion into adjacent markets.
   Referral Partners: Quality assurance consultants, Regulatory compliance specialists, Industry certification bodies, Laboratory equipment suppliers
   

4. Opportunities for Family Offices
   ◾ Build healthcare delivery platforms that can last generations.
   Why It Works: Aging demographic tailwinds, essential service with steady cash flows, opportunity for tech-enabled scaling, natural hedge against inflation
   Referral Partners: Family business advisors in healthcare, Local medical practice brokers, and Healthcare real estate specialists
   ◾ Acquire businesses that can institutionalize complex knowledge and make it transferable across generations.
   Why It Works: Captures institutional knowledge, creates teaching/learning systems, builds intellectual property moats, and enables generational continuity.
   Referral Partners: Educational technology developers, Corporate training specialists, Knowledge management consultants, Industry mentorship programs
   

5. Opportunities for Private Equity
   ◾ Cross-Border Tech Services Arbitrage - globalizing specialized tech services

   The Value Creation Angle
   1) Buy regional leaders at lower multiples
   2) Implement global operating platforms
   3) Cross-sell across geographies
   4) Exit to strategic buyers craving global scale
   Referral Partners: Regional tech consultants, Cross-border M&A advisors, and Global systems integrators
   ◾ The "Technology De-Risking" Play - targeting companies that help enterprises de-risk their technology adoption
   The Value Creation Lever
   1) Buy: Companies at traditional IT services multiples
   2) Build: Add risk management and compliance capabilities
   3) Exit: Sell at cybersecurity/risk management multiples
   Referral Partners: Technology risk consultants, Compliance automation providers, Digital transformation advisors, and Enterprise architecture firms
   

6. Opportunities for Asset Managers
   ◾ The Alternative Data Infrastructure Play - companies building the infrastructure that makes AI and data analytics possible
   Why It Works: Natural oligopoly characteristics due to scale requirements, high barriers to entry from infrastructure investments, built-in inflation protection through essential service status, and multiple revenue streams (infrastructure, software, services).
   Portfolio Opportunity: AI-optimized data center operators, Quantum computing infrastructure providers, Green energy providers focused on compute loads, and High-performance cooling system manufacturers
   Referral Partners: Data center architects, Quantum computing consultants, Green energy specialists, AI infrastructure advisors
   ◾ The "Specialized Data Exchange" Strategy
   Why It Works: Network effects create natural monopolies, data assets appreciate over time, high margins from scalable platforms, and natural defense against disruption.
   Portfolio Opportunity: Healthcare data exchanges, Supply chain intelligence platforms, Financial market data providers, and Agriculture data marketplaces
   Referral Partners: Industry data specialists, Market intelligence firms, IoT platform developers, Vertical market analysts

New Loan Programs/Lenders
◾ Apollo and Standard Chartered form a $3 billion financing partnership for global infrastructure and energy transition credit Read
◾ BMO and Canal Road Group launch a strategic partnership providing direct lending to upper middle-market companies Read

😲 Didn’t see that one coming

◾ Amex to pay $230M to resolve deceptive marketing allegations Read
◾ Robinhood to pay the biggest fine among more than $100M imposed by SEC Read
◾ Prospect Medical Holdings files for Chapter 11 amid criticisms of prior PE ownership Read
◾ Diamond Comics Publishers, one of the top US distributors, files for Chapter 11 bankruptcy after losing exclusive publishing partnerships and more Read
◾ US sues KKR for allegedly shunning antitrust filings requirements Read
◾ CFPB sues Capital One, alleging the bank “misled consumers about its 360 Savings accounts.” Read

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Lastly, no content provided by Bridge Loan Guy or Loans, Lenders & Leverage should be considered tax, investing, or financial advice. This email and any other content we provide are for entertainment and education purposes only. We do not claim to provide tax, investment, financial, or other legal advice. Any content provided by Bridge Loan Guy or Loans, Lenders & Leverage is the personal opinion of our owners and/or staff – you should always conduct your own research.