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Amalgamated Bank launches middle market debt financing company

Amalgamated Bank has formed Amalgamated Capital, a New York-based division that will provide senior cash flow debt financing to lower middle market companies.

The new division, which will be under the direction of leveraged finance professional Timothy G. Clifford, will target leading private equity firms and other investors who focus on acquiring and growing middle market companies.

Derrick D. Cephas (pictured), Amalgamated’s president and chief executive officer, says: "This new lending platform is an important step for us as a bank and for the markets we will be serving. Because of dislocations in the capital markets system at the present time, this is a very attractive business and an excellent place to put a portion of our liquidity to work. The fact that we have established Amalgamated Capital as a separate, new division of the bank underscores our commitment to the leveraged lending and private equity markets. In doing so, we believe we will provide an important new source of capital to private equity-backed middle market companies which have fewer and fewer financing options as a significant group of traditional lenders have either exited the business entirely or no longer have capital to deploy.”

Clifford, who has been appointed executive vice president and director of Amalgamated Capital, and will also serve on the bank’s credit committee. He has more than 18 years of middle market leveraged finance experience, and most recently helped grow Churchill Financial from a start-up to a USD3.5bn middle market finance company.

Amalgamated Capital’s target market will be smaller middle market companies with enterprise values under USD150m. It intends to grow the business by pursuing transactions in partnership with proven management teams and private equity sponsors who invest in companies generally with Ebitda between USD3m and USD20m. Its goal is to build a national franchise serving a cross-section of industries that will include consumer, distribution, education, healthcare, industrial, manufacturing, services and software.

Amalgamated Capital is actively targeting companies to lead senior cash flow debt financing needs of USD5m to USD60m.

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