From Fraud Alerts to Forged Steel: A Refreshingly Solid Story
In our last blog, we dove into the darker side of lending, fraud. If you missed it, you can catch up here. It’s the bogeyman of the balance sheet, and while vigilance will always be part of our DNA, we thought it was time to swing the pendulum back to something a little more… encouraging.
This month, we’re pleased to share a transaction that perfectly showcases what we love about private credit: structured creatively, real collateral, and real results.
A Solid Deal—Literally.
We recently closed on a USD $9 million equipment financing transaction as part of a $12 million facility for a well-established automotive supplier based in Ohio. The company specializes in forged steel components—products that are critical to the supply chain and, helpfully, don’t go out of fashion every time a new model hits the road.
The capital was used to support the acquisition of a peer company in the same industry, a strategic move aimed at increasing production capacity, reducing costs, and improving margins. And while the business case was compelling, what made it bankable for us was simple: real, tangible assets. Think heavy-duty equipment, clean real estate, and a rock-solid parent company (a publicly traded entity with a healthy balance sheet).
What We Liked:
- A long operating history in a durable niche of the automotive sector
- Non-model-specific components = reliable demand
- Unleveraged equipment and real estate (music to our ears)
- A well-capitalized parent entity—because strong backing matters
This is the kind of deal where private credit shines. Speed mattered. Structure mattered. Asset coverage mattered.
From the Deal Desk
We believe our role in private credit isn’t to reinvent the wheel, it’s to keep the wheels turning for businesses that know exactly where they’re headed. In this case, we helped unlock the value of under-leveraged assets to enable growth through acquisition.
It’s private credit hard at work: turning steel into opportunity.
Wrapping Up
We know the world of investing is full of noise, risk, and sometimes—yes—fraud. But for every cautionary tale, there are stories like this: smart operators, real assets, and well-structured capital driving strategic growth.
And if you’re an investor in our fund—or thinking about becoming one—know this: our portfolio is built deal by deal, with discipline and creativity at the core. We’re proud of this one and look forward to sharing more success stories with you.
