IN THE NEWS
Second Avenue Capital Partners Completes $45MM in Transactions for Clients Across Multiple Industries
BOSTON, Massachusetts – April 12, 2023 – Second Avenue Capital Partners (SACP), a best-in-class alternative to traditional sources of capital, announced the completion of three recent transactions totaling $45MM in the furniture, home furnishings, and beauty sectors. The new financing arrangements include a $10 million credit facility for a growing RTA furniture manufacturer, a $25 million term loan for a national retailer of home goods, and a $10 million credit facility for a beauty brand developer. In each case, SACP delivered a relevant and flexible capital solution to support these companies and help them achieve their financial objectives.
A well-established furniture manufacturer and distributor in the RTA furniture category turned to SACP for a $10 million credit facility to provide additional working capital in support of new growth opportunities. Part of a portfolio of store and digital retailers, the company sells to well-known retailers including Wayfair, Pottery Barn, The Container Store, West Elm, Home Depot, and more, as well as to independent designers and hospitality businesses.
“Our relationship with the larger portfolio of brands made this transaction an easy fit for SACP,” said Mike Sullivan, Managing Director of Second Avenue Capital Partners. “The management team has demonstrated an ability to identify strategic acquisitions and successfully execute on their business plans. We’re pleased they turned to us for the financing needs of this recent acquisition. We recognize the value this company brings to the RTA furniture category with strengths in its manufacturing and distribution capabilities. By leveraging the insight gained from our affiliates, we can support their continued growth.”
A leading retailer of home goods looked to strengthen its financial position and expand its resources to support strategic objectives. As part of an overall plan to increase liquidity and repay debt, SACP provided the company with a $25 million term loan. The proceeds were used to retire debt and allow the company some flexibility with sourcing additional merchandise.
“As a lender with retail affiliations, it’s important for SACP to support other retailers and give them the flexibility they need to thrive and preserve jobs,” said Chris O’Connor, President of Second Avenue Capital Partners. “This is the type of transaction we were built for, one in which we can leverage our deep retail experience. We have a passion for helping companies overcome challenges, and this customized debt solution allows the management team to focus on merchandise and operational improvements.”
A leading brand incubator in the beauty space needed to leverage its accounts receivables and inventory for a more flexible financing arrangement to replace an existing facility. SACP structured a $10 million credit facility to quickly accommodate the company’s needs and time constraints. SACP’s track record of executing quickly, as well as deep retail and consumer products expertise, gave the company confidence in its selection of a lending partner. By securing the credit facility, the company is able to access vital resources immediately and advance its long-term business plan for success.
“This was a fast and interesting deal for us, one we are really excited about,” said Mike Sullivan of SACP. “We have other clients in the beauty industry, but this is more about concept, creative, product development, and delivery. They analyze consumer trends and help build impactful brands that have a well-defined target in the marketplace. Our strength and affiliations in consumer products make SACP an ideal lending partner, adding value and support to take the business to the next level.”
About Second Avenue Capital Partners – Second Avenue Capital Partners, LLC (“SACP”) (www.sacp.com), a Schottenstein Affiliate, specializes in asset-based loans for the broader retail and consumer products industry. Serving middle-market companies, SACP leverages the experience of retail operators, product merchants, and lenders to deliver an array of customized, capital solutions. A unique merchant perspective gives SACP the ability to recognize and unlock value in assets other capital providers often overlook or do not understand. The firm’s tailored financial solutions are a vital resource for clients seeking capital to effectuate strategy and achieve financial objectives. SACP is headquartered in Boston with additional offices in New York, Columbus, and Los Angeles.