Gibraltar has built a long-standing reputation around being the preferred ABL partner to private equity groups through its ability to support acquisition and growth opportunities.
GBC’s asset-based lines of credit provide fast and flexible capital when sponsor-backed companies want to proactively address challenges or capture opportunity. Gibraltar’s leadership understands the support and stability needed during periods of transition and have developed a financing framework around helping guide clients through their new path of growth. This model aligns well with how private equity groups operate.
“When there’s an opportunity that requires a little more digging underneath the surface and getting creative…Gibraltar does a good job of understanding all of the nuances. That’s what we do, too,” says Diversis Capital VP Devin Scott.
Taking Swift Action to Support the Needs of Multiple Parties
GBC is known for supporting fast-moving opportunities — closing as fast as 30 days. We know how critical swift action is for business and that every day counts. This is why Gibraltar’s leadership team strives to be quick and decisive when finalizing deals.
It’s typical for asset-based lenders to require a minimum equity contribution, but GBC doesn’t take a one-size-fits all approach to financing solutions. Our creative, flexible approach to financing allows new acquisition financing to occur without a minimum equity requirement. Our borrowing base creativity allows us to deliver maximum liquidity to help better appraise assets to determine a borrowing base.
This approach has helped private equity groups achieve faster growth than with a traditional lender. It’s also what’s helped us create trusted, long-term repeat-business relationships with several of our financial sponsor clients.
GBC specializes in providing financing for challenging turnaround scenarios or seasonal/cyclical businesses or businesses impacted by economic down cycles, tariffs, or new regulations.
Unlike traditional lenders, Gibraltar looks beyond formulaic ratios and performance blips. This enables us to provide private equity investors more leeway than traditional funding sources might. By approaching businesses with a private equity company mindset, GBC provides best in class service.
“We liked that they are like-minded. They look past the superficial and dig deep to uncover the potential for growth. Also, they move fast,” says Industrial Value Partners (IVP) partner Rod Grandy.
Partnerships that Work: Supporting Companies and their Private Equity Sponsors
There are numerous examples of GBC’s ability to provide companies and their private equity sponsors with flexible financing and maximum liquidity, based on our ability to understand each business’ special situation. One instance is where GBC provided Texas-based Easy Gardener Products, Inc, a $20 million credit facility to help with a restructuring. Easy Gardener is owned by Centre Lane Partners, a New York based private investment firm.
GBC is also known for its ability to support the interests of multiple parties, which was the case when Gibraltar provided $20MM in acquisition financing to carve out and establish a new, sponsor-backed farm supply company and brand, Agway Farm & Home. CriticalPoint Capital, a Los Angeles-based operationally focused private equity firm was the private equity sponsor.
“GBC’s innovative team allowed for a creative collateral structuring that resulted in them being selected as our preferred financing partner. We sought a quick process to close the transaction, and GBC delivered their end of the deal by swiftly moving the deal to completion,” said Brad Holtmeier, Partner at CriticalPoint Capital.
Gibraltar also prides itself on offering greater liquidity and flexibility than traditional commercial bank loans. This was the experience GBC’s leadership provided to the private equity group acquiring Chelsea Lighting NYC. After benefitting from the team’s borrowing base creativity and a willingness to offer a non-traditional ABL, Kinzie Capital Partners was able to secure financing through GBC’s $15MM credit facility for the acquisition.
These are just a few of the many successful financing solutions GBC has developed for our financial sponsor partners over the years. Want to learn more about how we work with and support the growth goals of sponsor-backed companies? Read our latest case studies.
We value our partnerships with private equity groups. Learn how we can tailor a capital solution that fits you and your portfolio companies. Connect with our team today.