10th Lane Finance is a private credit firm focused on providing bespoke financing solutions to lower middle-market companies. Unlike traditional lenders, they position themselves as strategic partners, offering flexible capital and operational expertise to support growth, acquisitions, and recapitalizations. Their target companies typically have annual revenues between $10 million and $100 million, representing a significant gap in the market where access to capital can be challenging.
A key differentiator for 10th Lane Finance is its hands-on approach. The firm doesn’t just provide capital; they actively engage with portfolio companies, leveraging their deep operational backgrounds to provide strategic guidance and support. This involves working closely with management teams on areas like financial planning, operational improvements, and strategic execution. This collaborative model aims to not only improve financial performance but also to build sustainable long-term value.
Their investment strategy centers on identifying established businesses with strong management teams, defensible market positions, and demonstrable growth potential. While they are sector-agnostic, they often gravitate towards industries with recurring revenue models, fragmented markets, or opportunities for consolidation. They typically invest in companies with EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) between $2 million and $10 million, indicating a focus on profitability and established cash flow generation.
10th Lane Finance offers a range of financing solutions, including senior secured debt, unitranche loans, and mezzanine debt. This flexibility allows them to tailor financing packages to the specific needs of each company. For example, a company seeking to acquire a competitor might benefit from a unitranche loan, which combines senior and junior debt into a single, streamlined instrument. Conversely, a company looking to invest in new equipment might utilize a senior secured loan. The firm’s ability to structure customized deals is crucial in the often-complex landscape of lower middle-market finance.
The firm’s investment process is rigorous, involving thorough due diligence, financial modeling, and operational assessments. They place a strong emphasis on understanding the competitive landscape, market dynamics, and potential risks associated with each investment. Their team’s experience in private equity, investment banking, and operational management allows them to effectively evaluate investment opportunities and identify value creation levers. Ultimately, 10th Lane Finance seeks to be more than just a lender; they aim to be a trusted partner, contributing to the success of their portfolio companies through capital and expertise.