Callodine Group has agreed to acquire Gordon Brothers Finance Company, a provider of provider of loans to middle-market companies. As a result of the transaction, GBFC has changed its name to Callodine Commercial Finance. This acquisition was funded in part by financing from KKR, East Asset Management and Axar Capital Management. BlackRock Capital Investment Corporation will remain an investor in CCF.
BOSTON–(BUSINESS WIRE)–Callodine Group (“Callodine”), an asset management firm focused on yield-oriented investment strategies, today announced that it has entered into a definitive agreement to acquire the loan portfolio and assume the employees and operating costs of Gordon Brothers Finance Company, LLC (“GBFC”). In connection with the closing of the transaction, GBFC has changed its name to Callodine Commercial Finance (“CCF”).
Callodine’s acquisition represents approximately $400 million in assets and is being funded in part by new strategic financing from KKR, East Asset Management and Axar Capital Management. BlackRock Capital Investment Corporation (“BCIC”), the most recent majority owner of the business, will also remain a financial partner to CCF.
“BCIC is pleased to have partnered with Gene and his team as a major shareholder to launch the business in 2014 and expand its capabilities,” said James E. Keenan, Chairman and Interim CEO of BCIC. “We believe this transaction is a positive next step in the company’s evolution and look forward to benefitting from the team’s ongoing success as a continued investor in the company.”
“We are deeply appreciative of BCIC’s past and continuing support,” said Gene Martin, CEO of Callodine Commercial Finance. “The team and I are excited to join the Callodine platform and continue our mission of delivering creative capital solutions to clients in concert with our new financing and operating partners.”
“We are thrilled to welcome aboard Gene and the rest of the team,” said James Morrow, founder and CEO of Callodine Group. “At Callodine, we believe that a significant opportunity exists to provide asset-based financing solutions to the middle market. We look forward to working closely with Gene’s team and our financing partners to capitalize on this growing market opportunity.”
“We are pleased to provide financing to support Callodine and the launch of its Callodine Commercial Finance platform,” said Daniel Pietrzak, Partner and Co-Head of Private Credit at KKR. “This investment builds on KKR’s strategy of backing platforms with strong management teams that can provide us with scaled exposure to underserved segments of the asset-based finance market.”
Callodine expects to complete the full rebranding of the business over the coming weeks.
Further terms of the transaction were not disclosed.
Aviditi Advisors served as sole financial advisor to Callodine on the transaction.
About Callodine Group
Callodine Group is a holding company that, through its asset management subsidiaries, targets attractively valued yield opportunities across the capital markets landscape. The Company’s asset management subsidiaries pursue income-oriented investments that have the potential to provide equity-like total returns. The Callodine platform has the ability to invest throughout the capital structure and manages investment strategies within both public equities and private credit on behalf of its institutional investor clients. For additional information about the firm, please visit Callodine’s website at www.callodine.com.
About Callodine Commercial Finance (fka Gordon Brothers Finance Company, LLC)
Callodine Commercial Finance is a private asset-based provider of loans to middle market companies globally. With strong institutional support, CCF turns asset knowledge into capital. Solely focused on lending, the firm’s dedicated team is nimble, creative and responsive in providing capital solutions to its clients. CCF serves as a complementary financing source, filling a gap between where traditional capital providers are comfortable lending and the capital a company needs. CCF is a subsidiary of Callodine Group.
About BlackRock Capital Investment Corporation
BlackRock Capital Investment Corporation is a business development company that provides debt and equity capital to middle-market companies. The Company’s investment objective is to generate both current income and capital appreciation through debt and equity investments. The Company invests primarily in middle-market companies in the form of senior and junior secured and unsecured debt securities and loans, each of which may include an equity component, and by making direct preferred, common and other equity investments in such companies.
KKR is a leading global investment firm that manages multiple alternative asset classes, including private equity, credit and real assets, with strategic partners that manage hedge funds. KKR aims to generate attractive investment returns for its fund investors by following a patient and disciplined investment approach, employing world-class people, and driving growth and value creation with KKR portfolio companies. KKR invests its own capital alongside the capital it manages for fund investors and provides financing solutions and investment opportunities through its capital markets business. References to KKR’s investments may include the activities of its sponsored funds. For additional information about KKR & Co. Inc. (NYSE: KKR), please visit KKR’s website at www.kkr.com and on Twitter @KKR_Co.
About Aviditi Advisors
Aviditi Advisors is a premier, independent alternative investment advisory firm providing full life cycle, client-driven solutions across capital formation, capital solutions, and liquidity solutions. The Firm is led by 12 Partners, with an average of 19 years’ experience, and over 20 additional members located in five offices across North America, Europe and Asia. Specifically, Aviditi engages in fund placements, direct equity syndications, secondaries and fund structuring solutions, advisory work on capital market raises and other tailored solutions for alternative investment managers and investors. References to Aviditi Advisors includes Aviditi Financial, LLC, and all other affiliates. For additional information about the Firm, please visit aviditiadvisors.com.