Griffin-Benefit Street Partners BDC Corp. today filed plans to sell up to $1.5 billion of common stock in an IPO.
The company, a new BDC, will invest in debt and equity of middle-market companies. Griffin Capital BDC Advisor (GBA), an affiliate of Griffin Capital, will manage the BDC.
The senior management team of GBA will comprise Kevin A. Shields, David Rupert, Joseph Miller, Randy Anderson, and Howard S. Hirsch.
Rupert will be CEO of the new BDC. Investment decisions require unanimous approval of the investment committee, comprised of Shields, Rupert, Miller, and Anderson.
Investment professionals of Benefit Street Partners, an affiliate of Providence Equity Partners, will serve as sub-advisors to GBA. They include Richard J. Byrne, Thomas J. Gahan, Michael E. Paasche, David J. Manlowe, and Blair D. Faulstich.
Providence Equity Partners was founded as a private equity firm specializing in media, communications, education, and information sectors, and has since expanded into credit. It had more than $40 billion under management as of Nov. 30, 2014.
Investments could include senior secured, unitranche, and second-lien debt, senior unsecured and subordinated debt, and equity and equity-related securities, either issued by private U.S. companies or public ones with a market capitalization of up to $250 million. The company may invest in syndicated deals.
Investments will range from $5-$50 million initially.
“We believe that investing in the debt of private companies generally provides a more attractive relative value proposition than investing in broadly syndicated debt due to the conservative capital structures and superior default and loss characteristics typically associated with these companies,” said the prospectus, filed by the company on Dec. 23.
“The prevailing investment environment presents a compelling case for investing in secured debt of private U.S. companies primarily in the middle market.”
Shares won’t trade on an exchange. The company plans to carry out quarterly tender offers beginning one year after the initial share sale of at least $2.5 million. The IPO is aimed at a broad high-net-worth market, with a minimum purchase requirement of $2,500.
The company has applied for SEC approval to co-invest with other funds managed by Benefit Street, GBA, and affiliates.
Griffin Capital is a privately held investment management company based in Los Angeles that’s focused on real estate investments in the U.S. and Britain and managing institutional capital. – Abby Latour
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