Searchlight Capital Partners LP and LionTree, an investment and merchant bank focused on the technology, media and telecommunications sectors, have launched LightTree Capital Solutions, an alternative to traditional venture capital and bank financing for TMT companies. No financial terms were disclosed.
NEW YORK–(BUSINESS WIRE)–LionTree LLC (“LionTree”), a global investment and merchant bank focused on the technology, media and telecommunications (“TMT”) sectors, and Searchlight Capital Partners, L.P. (“Searchlight”), a global private investment firm, today announced the launch of a new partnership to provide a differentiated capital solutions product to companies in the TMT sector.
The partnership, LightTree Capital Solutions (“LightTree”), will provide a distinct alternative to traditional venture capital and bank financings for TMT companies through bespoke, less-dilutive investment structures. LightTree leverages LionTree’s global platform and sector expertise in combination with Searchlight’s TMT industry and structuring skills and its flexible, long-term capital.
LionTree and Searchlight will make investments across a range of subsectors within TMT, with a focus on growth companies that have talented management teams, strong track records of performance and a clear vision for disrupting or creating large market opportunities.
“LightTree is a natural evolution of LionTree’s core capabilities that will provide our clients in the TMT space with more tailored funding solutions than offered by typical debt and equity providers,” said Aryeh B. Bourkoff, Founder and CEO of LionTree. “Too many of our high growth clients find existing capital raising options unappealing: they don’t want to raise debt while they are rapidly growing, nor do they want to raise another dilutive equity round or go public pre-maturely. Our Fortune 100 TMT clients have access to a broad range of funding solutions that straddle debt and equity. We and Searchlight will bring these same tools to our high growth TMT clients, but with a highly nuanced, industry-informed approach. Our goal is to connect our clients with the right capital and expertise to seize on their business opportunity, while maintaining maximum upside for founders and shareholders. We are excited to forge this new relationship with Searchlight, a firm we have long admired for their commitment to investors and stewardship of companies.”
“Since its formation, Searchlight has provided flexible capital and strategic support to businesses in complex situations in various stages of their life cycle,” said Eric Zinterhofer, Founding Partner of Searchlight. “Our firm has a particularly strong track record in the media and telecom sectors. We are focused on applying these skills to companies in rapidly evolving TMT sectors, where existing capital solutions often lack the creativity and versatility of the underlying businesses. In partnering with LionTree, we gain a partner with deep client relationships and expertise evaluating emerging business models and trends in TMT, as well as a trusted collaborator. We are confident that by bringing together Searchlight’s and LionTree’s collective expertise, we will create value-additive outcomes for all parties.”
LionTree delivers distinct value and tailored solutions to a diverse set of clients through the firm’s industry insight, connectivity and trusted execution. The partnership will serve as an extension of LionTree’s integrated products, including its advisory and merchant banking businesses, as well as its advisory division focused on growth companies, LT Growth. Since its founding in 2012, LionTree has advised on over 85 transactions of varying sizes and in various markets around the world, representing an aggregate transaction value of over $300 billion.
Searchlight provides strategic direction and capital flexibility to both leading corporations and earlier stage companies, across a range of transaction types and industries. The firm has a successful track record of driving substantial value through creative transaction structuring, deep industry knowledge and its relationships. With more than 300 years of collective experience, Searchlight’s team has proven expertise in both TMT and structured solutions.
About LionTree LLC
LionTree is a differentiated global investment and merchant banking firm focused on media, technology and telecommunications. Founded in 2012, LionTree works across offices in New York, San Francisco, London and Paris to serve clients on transactions around the globe. The Firm leverages its unique insights and relationships across its integrated product set: M&A Advisory, Capital Raising, IPO Advisory, Merchant Banking, Institutional Investor Membership (IIM) and LT Growth. Across these focus areas the firm connects clients with tailored ideas, actionable opportunities and resources that drive results. KindredCast, LionTree’s podcast series, features interviews with leaders in TMT and provides a look into the stories of executives who are among the most entrepreneurial of our time.
About Searchlight Capital Partners, L.P.
Searchlight Capital Partners is a global private investment firm with offices in New York, London and Toronto. Searchlight seeks to invest in business where their long-term capital and strategic support accelerate value creation for all stakeholders. For more information, please visit www.searchlightcap.com.