NXT Capital Adds $75 Million For Middle-Market Financing

Middle-market commercial finance company NXT Capital has added $50 million from private equity firm Stone Point Capital, and $25 million from an undisclosed U.S. corporate pension fund, bringing its total capitalization to roughly $530 million. Chicago-based NXT Capital was formed earlier this year by the Greenwich, Conn.-based Stone Point Capital, and by former principals of Merrill Lynch Capital.

PRESS RELEASE
NXT Capital LLC, a privately held middle-market commercial finance company based in Chicago (www.nxtcapital.com), today announced that it has expanded its equity capitalization to approximately $530 million as the company received a $50 million follow-on commitment from equity funds managed by Stone Point Capital, the company’s lead investor, and a $25 million commitment from a major US corporate pension fund. This latest round of capital follows the recent closing of a $150 million equity commitment from Teachers’ Private Capital, a unit of Ontario Teachers’ Pension Plan.

“We are pleased to receive additional equity backing from Stone Point Capital and support from two additional large and well established investors”

NXT Capital is led by former principals of Merrill Lynch Capital and was formed earlier this year by Stone Point Capital along with the founding management team. NXT provides structured financing solutions to middle-market clients through its Corporate Finance and Real Estate Finance groups, originating transactions directly on a national basis. The company targets senior financing opportunities of up to $100 million with a typical hold size ranging from $10 million to $30 million. Since its launch in April, NXT has provided financing commitments in excess of $400 million spread over 22 separate transactions and has become one of the most active participants in its key market segments.

“We are pleased to receive additional equity backing from Stone Point Capital and support from two additional large and well established investors,” said Robert Radway, NXT’s chairman and CEO. “With our expanded capitalization, we will maintain the significant momentum that exists in the business today, and build NXT Capital into a market-leading commercial finance business over the next few years. NXT’s larger equity base, along with our expanded senior debt and co-lending facilities, enables us to extend over $1 billion in new financing commitments. In addition, NXT Capital now maintains significant liquidity to support loan syndication activities in our Corporate Finance segment.”

Stone Point Capital LLC is a global private equity firm based in Greenwich, Connecticut, that has a 25-year record of making successful investments in the financial services industry. Stone Point Capital serves as the manager of the Trident Funds, which have raised more than $10 billion in committed capital to make investments in lending, banking, asset management and other financial services companies. For further information about Stone Point Capital, visit www.stonepoint.com.

Teachers’ Private Capital is one of the world’s largest private equity investors. It is the private investment department of the Ontario Teachers’ Pension Plan, the largest single-profession pension plan in Canada. The Ontario Teachers’ Pension Plan is an independent corporation responsible for investing the fund and administering the pensions of Ontario’s 289,000 active and retired teachers. For further information about Ontario Teachers’ Pension Plan, visit www.otpp.com.