Harvest Capital Strategies, the alternative asset management arm of JMP Group Inc has formed Harvest Capital Credit LLC, a specialty finance company providing structured credit to small businesses.
Richard P Buckanavage, who was formerly president and chief executive officer of Patriot Capital Funding, Inc, serves as president of Harvest Capital Credit and is joined by longtime colleague Ryan T Magee. Buckanavage and Magee are based in New York.
“Harvest Capital Credit is a dedicated provider of growth and opportunity capital to small businesses located throughout the US,” says Joseph A Jolson, JMP Group’s chairman and chief executive officer. “Although Harvest Capital Credit will originate transactions independently, it will leverage the infrastructure and capabilities of JMP Credit Advisors and should benefit from relationships and opportunities presented by Harvest Capital Strategies, which has committed an initial equity investment of USD10 million and an additional line of credit of up to USD30 million.”
“The lingering effects of the financial crisis and current financial market volatility have impeded capital formation in the commercial lending industry,” says Buckanavage. “The lack of liquidity is most pronounced for small businesses—the very market we seek to serve. We believe that the factors impacting our industry will persist, which should generate a strong pipeline of attractive investment opportunities for our platform.”