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Europe: Coleman, Marsh promoted to new EMEA roles at Goldman Sachs

Goldman Sachs has promoted Denis Coleman and Michael Marsh to new roles as head of the EMEA financing group and head of EMEA leveraged finance, respectively.

In his new role, Coleman will focus on continuing to grow Goldman Sachs’ franchise and integrating its financing businesses across equity, credit, and derivative products in the region.

Coleman has been at the bank for 20 years, and was named managing director in 2005 and partner in 2008. During his time he has worked in various divisions including Capital Markets in the fixed income, currency and commodities division, and the investment banking division (IBD), where became co-head of loan capital markets. In 2008 he was named co-head of leveraged finance, and in 2009 he was named head of EMEA credit finance.

Meanwhile, as head of EMEA leveraged finance, Marsh will work with Littleton Glover, head of EMEA leveraged finance origination, to focus on the bank’s client relationships and driving commercial opportunities in the region. He is currently head of EMEA high-yield and leveraged loan capital markets.  He joined Goldman Sachs in 2006, and was named managing director in 2008 and partner in 2014.

In addition, Jim Esposito, co-head of the global financing group, will join the bank’s securities division as chief strategy officer. Prior to becoming co-head of the global financing group, Esposito was head of the EMEA financing group for two years, and before that, he was chief operating officer of IBD. He joined Goldman Sachs in 1995 as a salesperson in FICC for emerging markets debt, and was named managing director in 2002 and partner in 2006. — Staff reports

This story first appeared on www.lcdcomps.com, LCD’s subscription site offering complete news, analysis and data covering the global leveraged loan and high yield bond markets. You can learn more about LCD here

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Middle market: Cadence Credit Partners launching today, founded by Miller Buckfire’s Kubick

Cadence Credit Partners, a new independent capital markets advisory firm specializing in strategic finance, is launching today.

The founder of the firm is Ron Kubick.

Cadence Credit Partners will specialize in arranging secured credit facilities of $35–500 million for public, private, and sponsor-owned companies that are undergoing a turnaround, executing an acquisition, or need incremental working capital.

Cadence Credit Partners intends to draw upon established relationships with regulated and non-regulated sources of financing, including commercial banks, investment banks, insurance companies, BDCs, specialty finance companies, family offices, and credit hedge funds.

Prior to launching the new firm, Kubick was a managing director at Miller Buckfire & Co. Also, Kubick created and led strategic finance groups at Morgan Stanley and Barclays Capital, and he was a founding member of GE Capital’s Retail and Restructuring Finance Group.

The firm will have offices in New York and is actively recruiting for up to two associate level positions and one director level banker. Each position will have deal-execution responsibilities and direct client interaction. — Abby Latour

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Tiny BDC, pursued by activist, announces plan to liquidate

Crossroads Capital, a tiny BDC once targeting pre-IPO equity, announced this week it would liquidate its investment portfolio and distribute cash to shareholders.

This news comes after activist Bulldog Investors became the largest shareholder of the company, previously called BDCA Venture. BDCA Venture changed its name from Keating Capital in July 2014.

Crossroads Capital’s investments are in preferred stock, common stock, subordinated convertible bridge notes, subordinated secured notes, and equity warrants, although under previous management the company made an eleventh-hour attempt to switch to a debt strategy.

However, as of Jan. 25, the company’s investment strategy became “preservation of capital and maximization of shareholder value,” and will immediately pursue a sale of investments.

The plan to liquidate “was made after considerable analysis, review and deliberation. Both management and the board believe this is the most efficient way to deliver the company’s underlying value to our shareholders,” a Jan. 25 statement said.

Among the investments in the portfolio as of Sept. 30 are social media content company Mode Media, ecommerce network Deem, online dating company Zoosk, software company Centrify, renewable oils company Agilyx, human resources software company SilkRoad, waste management company Harvest Power, and solar thermal energy company BrightSource Energy.

Net assets totaled $54.5 million as of Sept. 30, 2015, or $5.63 per share, consisting of 12 portfolio company investments with a fair value of $39 million and cash and cash equivalents of $16.2 million. Shares in Crossroads Capital, which trade on Nasdaq as XRDC, closed at $2.10 yesterday.

In September 2014, the company’s previous board approved a change in strategy to focus on debt of private companies, moving away from venture equity. The change was part of then-management’s attempt to reduce the company’s stock discount to NAV.

But this plan was too little, too late, for some.

In May, Bulldog Investors filed a proxy statement soliciting support for a plan to elect its own board members, terminate an external management agreement with BDCA Adviser, and pursue a plan to maximize shareholder value through liquidation, a sale, or a merger.

Bulldog Investors criticized the strategy to convert BDCA Venture away from venture capital–backed or high-growth companies into an income-oriented fund, saying the BDC’s small size and high expense ratio meant the plan was “almost certainly doomed to fail.”

BDCV’s shares were trading at $5.05 at the time the proxy was filed in May 2015, a 25% discount from its March 31 NAV of $6.71. That compared to a listing price of $10 at the time of the company’s IPO on Nasdaq in December 2011.

In contrast, BDCV’s expenses in the three years prior to the proxy totaled $13.25 million, or $1.33 per share, according to the Bulldog proxy.

The plan laid out in May 2015 has more or less come to pass.

In July, shareholders elected Bulldog-nominated directors Richard Cohen, Andrew Dakos, and Gerald Hellerman. A proposal to terminate the investment advisory agreement with BDCA Venture Adviser failed to pass in a vote at the 2015 annual meeting, but was approved by the board in October.

CEO Timothy Keating resigned in late July, replaced by COO Frederic Schweiger. Around that time, the company held equity investments in 12 portfolio companies, 11 of which were private portfolio companies and the other which was publicly traded Tremor Video. The company did not expect any of the private companies to complete an IPO in 2015.

Schweiger resigned as CEO in December, and was replaced by Ben Harris. Harris is a director of NYSE-listed Special Opportunities Fund.

At the same time, BDCA Venture announced a name change to Crossroads Capital. The ticker changed to XRDC on Nasdaq, from BDCV. — Abby Latour

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Antares adds Kristin Condon to leveraged loan syndications/sales/trading team

Antares Capital, which recently finalized the hiring of its loan syndications, sales, and trading team from GE Capital, will add Kristin Condon, who recently left RBC Capital Markets. Condon, who joins Antares as a managing director, is expected to start in March.

The Antares team, headed by industry veteran Kevin Burke, also includes managing directors Anthony Diaz, Mark Familo, Erica Frontiero, Peter Nolan, John Timoney, and Patrick Wallace. Todd Davis will be joining the team as an associate, from Capital One.

Canada Pension Plan Investment Board purchased Antares Capital from General Electric Capital Corp. last year. — Staff reports

This story first appeared on www.lcdcomps.com, LCD’s subscription site offering complete news, analysis and data covering the global leveraged loan and high yield bond markets. You can learn more about LCD here

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Lazard Taps Ziman to Bolster Restructuring Group

Lazard today announced that Ken Ziman will join the firm as a managing director in its restructuring group, effective March 1.

Ziman, who will be based in New York, was most recently deputy practice leader of corporate restructuring at Skadden where he represented companies in out-of-court restructurings and in-court proceedings, as well as lenders to and investors in troubled companies. — Rachelle Kakouris

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This story first appeared on www.lcdcomps.com, LCD’s subscription site offering complete news, analysis and data covering the global leveraged loan and high yield bond markets. You can learn more about LCD here

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Twin Brook Adds Kamran to Head Middle-Market Healthcare Lending

Twin Brook Capital Partners has hired Faraaz Kamran to head its healthcare lending initiative, the firm announced today. Kamran will focus on originating and underwriting loans to middle-market companies in the healthcare sector, primarily those with private equity sponsors.

Kamran joins Twin Brook from Madison Capital Funding, where he was a Managing Director and Group Head of Healthcare Leveraged Finance. Prior to that, Kamran worked at Merrill Lynch Capital Healthcare Finance, Dresdner Kleinwort Wasserstein, and American National Bank and Trust Company of Chicago.

Twin Brook also expanded its underwriting team with the addition of three new underwriting associates.

Twin Brook is the middle-market direct lending subsidiary of Angelo, Gordon & Co. The firm, which focuses on loans to companies with EBITDA of $3–50 million, recently completed its eighteenth financing and has committed over $325 million of capital in its first eight months. — Staff reports

This story first appeared on www.lcdcomps.com, LCD’s subscription site offering complete news, analysis and data covering the global leveraged loan and high yield bond markets. You can learn more about LCD here

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Macquarie Cap Hires Briggs as Head of Principal Transactions

Hugh Briggs has been appointed head of principal transactions in Europe for Macquarie Capital, according to a company statement. He will be based at Macquarie’s London office, reporting to Daniel Wong, head of Macquarie Capital Europe, and Alex Harvey, global head of principal transactions, Macquarie Capital.

Briggs brings more than 20 years’ experience across private equity, principal investing, and leveraged finance to the role. His previous roles include head of capital markets at CVC Capital Partners, director at DB Capital/MidOcean Partners, and working as a private investor. He also co-founded Hawthorn Leisure, a company that has acquired and now operates 350 pubs in the UK.

Macquarie’s Principal Transactions Group (PTG) is the principal investing arm of Macquarie Capital, and seeks to become a capital partner by investing alongside clients and growth companies globally. Macquarie Capital is the corporate advisory, capital markets, and principal investment arm of Macquarie Group, and since 2008 it has invested more than £2 billion in capital across a range of industries, structures, and jurisdictions. — Staff reports

This story first appeared on www.lcdcomps.com, LCD’s subscription site offering complete news, analysis and data covering the global leveraged loan and high yield bond markets. You can learn more about LCD here

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Great Rock, Two Sigma Launch Middle Market Lending Platform

Great Rock Capital Partners and Two Sigma Private Investments launched a lending platform for middle market companies.

The lending platform will provide asset-based and asset-backed loans. Loans will focus on refinancings, growth capital, bridge loans, rescue capital, bank replacement financings, acquisition, and restructuring financings.

Stuart Armstrong will serve as Great Rock’s CEO and CIO. Armstrong had been president of Great American Group’s specialty lending division, GA Capital, and CIO of Great American Capital Partners. He co-founded Tygris Commercial Finance and was executive vice president there. He was also president of Tygris Corporate Finance, CEO of Black Diamond Commercial Finance, and senior managing director for GE Corporate Lending’s Vertical Industries.

Two Sigma Private Investments is the private markets investment division of Two Sigma. Great Rock Capital Partners is a Connecticut-based investment management firm focusing on secured lending products for middle market companies. — Abby Latour

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HIG WhiteHorse Taps Nadzo for Middle Market Direct Lending Post

H.I.G. WhiteHorse hired Eric Nadzo to source debt investments to middle market companies across industries.

Nadzo joins as a principal. He will be based in Boston.

He will report to the managing directors for the credit platform, Javier Casillas, Pankaj Gupta, and Chris Paldino.

Nadzo joins a team of five other principals who source opportunities exclusively for H.I.G. WhiteHorse’s direct lending business, including on the West Coast, Southwest, Midwest, Northeast, Southeast, and now New England.

Previously, Nadzo worked in the special opportunity lower middle market group at Hercules Technology Growth Capital, according to LinkedIn. He was also a vice president at West End Capital and Advisory, where he spent five years.

H.I.G. WhiteHorse, the credit affiliate of H.I.G. Capital, lends to middle market companies in North America and Europe generating annual EBITDA of at least $7 million and revenue of $30 million or greater. — Abby Latour

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City National Bank hires Chiavetta for capital finance team

City National Bank hired Cathy Chiavetta to source and underwrite asset-based loans.

She started this month and joined as a senior vice president, based in New York. She will report to Martin Chin, who is based in Los Angeles and manages the capital finance team.

Chiavetta is responsible for both large syndicated transactions and club deals.

Previously, Chiavetta was a managing director at Z Capital Partners, where she sourced distressed senior secured debt investments. She also held sales, capital markets, and underwriting roles at Banc of America Securities, CIT Group, and TD Securities. — Abby Latour

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