Filling the Senior Loan Void: Chatham Capital Steps Up
UPDATE: This story has been updated to reflect comments from the firm and fundraising details. The absence of senior debt from the market has clearly driven the year's decline in M&A. But middle market buyout shops are finding new places to obtain financing for their deals. One we outlined earlier this week is regional banks. Another is new pools of capital. A perfect example is Chatham Capital, a mezzanine investor located in Atlanta, Georgia. The firm typically invests between $2 million and $60 million worth of capital in sub-debt, but according to a source, the firm started a separate "one-stop" fund with capabilities for both senior debt and mezzanine lending. The fund seeks mezzanine-like returns, and is willing to hold up to $30 million to $40 million of debt on its books without the need for syndication, the source said. Chatham has gathered 380 million for this “one-stop” strategy and is raising more.
