Gibraltar Business Capital (GBC) has carved a name for itself as the preferred ABL partner of private equity by delivering fast and flexible asset-based lines of credit to sponsor-backed companies who need it most.
Beyond just a slogan, GBC provides capital for private equity sponsors who want to proactively address challenges or capture new opportunities in the market. We pride ourselves on delivering successful financing solutions for private equity owned companies in a way that works for all parties involved.
Knowing many of these scenarios are unique and change quickly, it’s important for private equity sponsors to understand how to find a partner that helps them act fast, while achieving their goals. Below we break down five things private equity sponsors should look for when choosing a capital partner.
1. Find a Partner that Can Support Fast-Moving Opportunities
Swift action is crucial for businesses — especially in today’s market where capital is abundant, and competition is high. Every day counts when trying to secure a deal so it’s critical your partner be quick and decisive when finalizing terms and closing transactions. Whether it be for a fast-moving acquisition or to capitalize on a unique growth opportunity, your ABL partner should be able to provide financing on your timeline.
2. Ask About Minimum Equity Requirements
Many asset-based lenders demand minimum equity contributions of their private equity sponsor partners, but this one-size fits all approach rarely is the right fit for most. Many traditional lenders, for example, have tighter restrictions on their liquidity limits, and have less flexibility in these requirements. They often aren’t willing to work outside the box to fit your specific needs. Look for a partner that crafts financing solutions built around your needs.
3. Seek a Capital Partner that Fosters Long-Term Relationships
Repeat business should be the stamp of approval you’re looking for from other private equity sponsors that have chosen to return to an ABL partner. At GBC, several of our private equity sponsor clients have returned to us after their first transaction and have sought financing solutions for other companies in their portfolios or that they are looking to acquire.
4. Rely on a Creative Capital Partner to Achieve Maximum Liquidity
Borrowing-base creativity is important when seeking a financing partner that can help you achieve maximum liquidity. Relying on a partner, like GBC, that takes an innovative, flexible approach to reviewing a company’s assets to construct a borrowing base is key. Look for a partner with an established track record of creative borrowing base development and credit facility structuring, including one with partner testimonials, references or supporting transaction examples.
5. Choose a Capital Partner that Knows how to Navigate Challenges
At GBC, we know even the best plans can get off track. Be sure to ask your prospective lending partner about their responses to challenging or unexpected financial scenarios with partner borrowers or private equity sponsors. It’s important to rely on a patient capital partner that offers sponsors true support and stability as they navigate challenging times.
Gibraltar values our partnerships with private equity groups. Are you ready to learn how we can tailor a capital solution that fits you and your portfolio companies? Let’s talk today.