SACP Recognized in ABF Journal’s 2024 Dealmakers of the Year for Credit Facilities to Brixton, Dover Saddlery, and Backcountry

The following profile appeared in the ABF Journal Q4 2024 Dealmakers of the Year issue, Vol 22, No 4

Second Avenue Capital Partners: Unlocking Value and Leading the Way in Retail-Focused Lending

With a sharp focus on retail and consumer products, Second Avenue Capital Partners has redefined asset-based lending by delivering tailored solutions and uncovering hidden value. The firm’s expertise and client-first approach have made it a trusted partner for businesses navigating financial transitions.

Deal Size Range: $5MM – $125MM+

Second Avenue Capital Partners (SACP) has emerged as a leader in asset-based lending by focusing on retail and consumer products. SACP delivers tailored financing solutions while unlocking value in complex situations.

“Our go-to-market strategy is built on genuine depth of expertise,” Michael Sullivan, managing director, SACP, says. “When a prospective borrower speaks to our team, they see immediately that we speak their language, can identify their pain points and develop solutions. You can’t fake experience.” This focus has helped SACP specialize in industries such as clothing, footwear, luxury goods, cosmetics and consumer packaged goods.

SACP works with companies navigating financial transitions, including acquisitions, turnarounds, rapid growth or restructurings, where liquidity and flexibility are essential. “Transition typically means a period where liquidity and flexibility are paramount,” Sullivan says. “That’s where we can add the most value.” The firm’s lending positions range from $5 million to $125 million, with the capacity to lead larger transactions.

SACP excels in evaluating opportunities by focusing on sector alignment, asset quality and the borrower’s goals. “We look for a high-quality asset base and often can be most helpful when others haven’t fully recognized the value of the assets,” Sullivan says. SACP’s ability to lend beyond traditional metrics, such as exceeding 100% of net orderly liquidation value, showcases its expertise in maximizing overlooked value.

The firm’s singular focus on retail and consumer products sets it apart in the ABL market. “There are a lot of great asset-based lending firms in our space that we have a ton of respect for,” Sullivan says. “But we are the only firm that has a singular focus on a specific sector. Often, our competitors look to partner with SACP to leverage that expertise.”

SACP’s affiliation with Schottenstein, a leader in retail and consumer sectors, further enhances its capabilities. Schottenstein’s resources, such as SB360 Capital Partners, allow SACP to approach complex deals with depth and creativity. “We look at complex deals from many different angles, which helps us plan a path to success,” Sullivan says.

An example showcasing SACP’s capabilities is the Backcountry acquisition. “This deal really exhibits a lot of what SACP does well,” Sullivan says. “It required a high level of execution under tight timelines. The sponsor has seen SACP’s value-add firsthand and once again looked to us.” The transaction leveraged high-quality retail and e-commerce assets, highlighting SACP’s ability to align its solutions with client needs.

SACP takes a borrower-first approach to financing, tailoring solutions to meet the unique challenges of each client. “Every company we work with is unique, so our solution needs to be customized for their needs,” Sullivan says. “The borrower comes first. We spend a lot of time getting to know our prospective borrowers and listening to them. When we lend to a company, our goals are their goals. We want them to be successful.”

Looking ahead, SACP remains focused on disciplined growth. “2024 was a very busy year for SACP, especially in the second half,” Sullivan says. “We don’t see any signs of this slowing down in 2025. We’ve built a team and infrastructure to continue our rapid growth while sticking to the principles that have brought us success.”