Kayne Anderson BDC, a business development company externally managed by its investment adviser, KA Credit Advisors, LLC, an affiliate of Kayne Anderson Capital Advisors, LP (“Kayne Anderson”), announced an investment in SG Credit Partners, Inc. (along with affiliates and subsidiaries; “SG Credit”), a national credit platform focused on the lower middle market to complement KBDC’s middle market investing strategy. 

SG Credit was formed in 2013 and has invested in more than 200 companies, originating over $1.0 billion in commitments across its three lending verticals (Commercial Finance, Consumer Products, and Software & Technology). With offices in Newport Beach, Santa Monica, Atlanta, Boston, and Chicago, SG Credit plans to use its expanded capital base to grow existing verticals and develop adjacent businesses.

The investment complements KBDC’s private credit investment capabilities by further diversifying proprietary investment channels and will be structured as an $80.0 million term loan facility, $34.0 million delayed draw term loan facility and $12.0 million common equity investment. KBDC anticipates that its debt investment in SG Credit will be immediately accretive to earnings in 2025. KBDC will also be a significant minority shareholder in SG Credit following the closing of the transaction.

“This is a key strategic opportunity for KBDC and highlights our commitment to growing our portfolio with value-enhancing investments.” said Doug Goodwillie, Co-Chief Executive Officer of KBDC. “SG Credit’s unique lower middle market lending platform is highly complementary to our business and will further enhance the returns of KBDC’s diversified portfolio.”

“There have been a number of highly successful investments by BDCs and credit managers into asset-based platforms and finance companies in the past few years.” said Frank Karl, Senior Vice President of KBDC. “We have known the team at SG Credit for many years and they have delivered a strong track record of returns for their investors. We think that their investment culture is well-aligned with KBDC’s and are excited to partner with the team to provide a greater breadth of financing solutions to our clients.”

SG Credit Chairman Mack McNair commented, “We appreciate Kayne Anderson’s confidence in SG Credit. Their investment, combined with continued support and incremental investment from 4612 Group and The Cynosure Group, is a validation of the business we are building with Marc Cole, Charlie Perer, Andrew Hettinger, and the entire SG Credit team. With this investment, SG Credit is well-positioned in its pursuit of sound, profitable, growth as a leading multi-product credit platform serving the lower middle market.”

“We are proud and excited to partner with a firm of the caliber and history of Kayne Anderson. This collaboration will not only support our growth with additional capital but also enable us to offer innovative, value-added financing solutions to a wider range of companies.” said Marc Cole, Co-Founder and Chief Executive Officer of SG Credit. 

Fenchurch Advisory Partners US LP is serving as financial advisor and Mayer Brown LLP is acting as legal advisor to KBDC. Solomon Partners is serving as financial advisor and Greenberg Traurig LLP and Brenner, Saltzman & Wallman LLP are acting as legal advisors to SG Credit.