Gibraltar Business Capital, an industry leader in providing small and mid-market businesses with the capital they need to solve short-term challenges or seize growth opportunities, has joined Hercules Capital, Inc. (NYSE: HTGC), the leading specialty finance company to innovative, venture growth, pre-IPO and M&A stage companies backed by leading venture capital firms.
“This is an important transition for Gibraltar. We’re pleased that Hercules’ entrepreneurial mindset and vision for growth align so well with ours,” said Gibraltar CEO Scott Winicour. “The acquisition provides deep access to capital – it empowers our growth and amplifies our commitment to deliver value-added lending services to businesses with smart, creative financing solutions that have been the hallmark of our success.”
Hercules is the largest business development company “BDC” focused on providing financing to innovative, high-growth venture growth-stage companies in a broad variety of technology, life sciences and sustainable and renewable technology industries. Since its inception in December 2003, Hercules Capital has committed more than $7.3 billion to over 410 companies. Hercules Capital is the only venture debt BDC that has earned investment grade credit ratings from both S&P (BBB-) and Kroll Bond Rating Agency (BBB+).
“Our acquisition of Gibraltar represents a unique opportunity to invest in an established asset-based lender. We believe that this portfolio company investment gives us the opportunity to potentially expand the types of financing options we offer our clients,” said Manuel A. Henriquez, founder, chairman and chief executive officer of Hercules. “We are very pleased to welcome Gibraltar CEO Scott Winicour and the entire Gibraltar team to the Hercules family of portfolio companies.”
Since its formation in 2010, Gibraltar has underwritten more than $325 million in total credit facilities to more than 170 borrowers. Growth has been powered by lenders including Wells Fargo Capital Finance, part of Wells Fargo & Co. (NYSE: WFC), which was the underwriter of a $75 million senior facility for Gibraltar in 2017. This month, Wells Fargo extended their senior secured loan for two years with an accordion option, increasing Gibraltar’s line of credit to $100 million.
“Wells has been an important part in Gibraltar’s growth for 8 years and we’re proud to continue to support Gibraltar and their new ownership as they enter into this next growth phase,” said Cyndi Giles, Head of Lender Finance for Wells Fargo Capital Finance. “We’re also pleased to extend additional borrowing capacity to Gibraltar at this critical time to ensure they can expand their role serving small-and medium-sized businesses with innovative working capital financing solutions.”
“Wells Fargo has helped us offer readily accessible capital for our clients, while also energizing our team to further our growth and track record,” said Winicour. “We are proud of our history and our commitment to our team and our clients will never change. We are excited about new opportunities and new avenues to serve clients and business partners, fueling their growth.”
As a new portfolio company, Gibraltar will continue to operate as an independent senior secured asset-based lender and remain at its headquarters in Northbrook (Chicago), Ill. Sandler O ’Neill + Partners, L.P. served as financial advisor to Gibraltar Business Capital on this transaction.