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Gibraltar Supports Private Equity-Backed Food Distributor with $8MM ABL

April 19, 2023, 07:35 AM

Gibraltar Business Capital 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—helping portfolio companies grow.

A private equity group that Gibraltar has maintained a long-standing relationship with recently approached GBC for financing support for one of their portfolio companies, a global food products distributor with more than 1,000 products.

The portfolio company needed a lending partner who could offer a creative borrowing structure that would open up more liquidity and enable growth for the food products company. Gibraltar Business Capital was able to quickly step in and support the company with an $8MM ABL.

The $8MM line of credit is secured primarily by advances against accounts receivable and inventory. In this specific case, GBC was able to go beyond traditional ABL advances against accounts receivable and inventory to provide an over-advance to the company, creating the critical liquidity needed to support growth.

GBC’s Private Equity Strengths Prevail
GBC’s ability to help private equity groups achieve faster growth than with a traditional lender is what has helped us create trusted, long-term repeat-business relationships with several of our financial sponsor clients.

In this specific case, the private equity group sought a financing partner that could offer the type of flexibility not often replicated in the mainstream banking ecosystem. Unlike traditional lenders, Gibraltar looks beyond formulaic ratios and performance blips. Our approach allows private equity investors more leeway than traditional funding sources might.

GBC’s due diligence and dedicated efforts with the PEG created a trusted foundation for the financing relationship. And through its extensive team of seasoned lending professionals, GBC gave the private equity group confidence Gibraltar was the right financing partner.

Ultimately, the GBC team demonstrated its ability to creatively provide more liquidity to this sponsor-backed food products company to support growth goals and then moved swiftly and reliably to close, setting all stakeholders up for future success.

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