NEWPORT BEACH: Kayne Anderson BDC, Inc. (NYSE: KBDC) has announced a strategic investment in SG Credit Partners, Inc., a national credit platform serving the lower middle market, to enhance its private credit investment capabilities and diversify its portfolio.
The investment comprises an $80 million term loan facility, a $34 million delayed draw term loan, and a $12 million common equity stake. KBDC expects the deal to be immediately accretive to earnings in 2025 and will become a significant minority shareholder following the transaction’s close.
Founded in 2013, SG Credit has deployed over $1 billion in commitments to more than 200 companies across three lending verticals: Commercial Finance, Consumer Products, and Software & Technology. The firm operates out of offices in Newport Beach, Santa Monica, Atlanta, Boston and Chicago.
“This is a key strategic opportunity for KBDC and highlights our commitment to growing our portfolio with value-enhancing investments,” said Doug Goodwillie, Co-CEO of KBDC. “SG Credit’s lending platform is highly complementary and will further enhance our diversified portfolio’s returns.”
Frank Karl, KBDC Senior VP, said the partnership builds on SG Credit’s strong track record. “We have known the SG Credit team for years, and their investment culture is well-aligned with ours,” Karl said.
Marc Cole, SG Credit’s Co-Founder and CEO, welcomed the partnership. “Collaborating with a firm of Kayne Anderson’s caliber supports our growth and enables us to offer innovative financing solutions to a broader range of clients,” Cole said.
Fenchurch Advisory Partners US LP advised KBDC on the transaction, with Mayer Brown LLP providing legal counsel. Solomon Partners served as financial advisor to SG Credit, alongside Greenberg Traurig LLP and Brenner, Saltzman & Wallman LLP as legal advisors.