Middlemarch Advises 6th Avenue Capital On Convertible Note From Star Strong Capital

6th Avenue Capital Secures Convertible Note From Star Strong Capital

Two women leaders in specialty finance collaborate on redefining small business lending to support underserved businesses across the U.S.

New York, New York – October 2, 20196th Avenue Capital, LLC, a leading provider of alternative credit for US small businesses, today announced the close of a convertible note provided by Star Strong Capital, a venture debt investor in early stage businesses with a strategic focus on founders and management teams with diverse and non-traditional backgrounds. 6th Avenue Capital will use the investment to expand the company’s alternative financing solutions to underserved small and medium-sized businesses (“SMBs”) across the U.S. The company will enhance originations through relationships with key strategic partners including those with a mission-driven focus on minority and women-owned businesses. It will also continue to build an institutional infrastructure to deliver high touch, high tech results to both SMBs and investors.

The close of this transaction between 6th Avenue Capital and Star Strong Capital is the result of a highly collaborative effort between two women in specialty finance leading their respective organizations – Christine Chang, CEO, 6th Avenue Capital, and Spring Hollis, Founder and Managing Partner, Star Strong Capital. According to a McKinsey & Co. report in September 2018, women occupy fewer than one in five roles in the C-suite in financial services, making today’s announcement an important step towards achieving gender parity in the financial sector.

“We have been impressed by what the 6th Avenue Capital team has accomplished under Christine’s leadership including their extensive underwriting capabilities,” said Hollis. “Given our strategy of investing in underrepresented verticals, we’re particularly delighted to support 6th Avenue Capital’s focus on minority and women-owned small businesses. Our partnership will enable 6th Avenue Capital to identify even more SMB owners who need access to working capital for growth and expansion, which will, in turn, increase investors’ revenue potential.”

6th Avenue Capital is the only firm with in-house originations, underwriting and servicing operations that offers investors the opportunity to access the merchant cash advance (MCA) market through a diversified collective investment fund or a separately managed account that is customized for investors’ risk/return requirements. With today’s announcement 6th Avenue Capital, led by Chang, continues to rewrite the rules of small business alternative financing.

“We are pleased to use this investment to enable us to grow originations with strategic partners who understand the tremendous opportunity to help even more SMBs achieve their full potential. It will also enable us to scale our operations, including enhancing technology to quickly and efficiently deliver immediate, short-term bridge financing,” said Chang. “The 6th Avenue Capital and Star Strong Capital collaboration was a perfect match given our complementary goals to support diverse and non-traditional business owners. Spring’s track record and investing insights in specialty finance made her an ideal partner.” 

Middlemarch Partners, LLC served as the investment banking advisor on this transaction. According to Chang and Hollis, the firm provided invaluable expertise and support throughout the transaction and helped them navigate through its complexities.

“It’s been inspiring to watch two successful female leaders like Christine and Spring collaborate brilliantly on a highly complex transaction,” said Sasha Grutman, Partner at Middlemarch Partners, LLC. “I believe the world of finance is enhanced by more women playing leadership roles in deploying capital.  I believe 6th Avenue will help fund many great minority-owned and female-owned businesses.  And I know Star Strong is looking to provide financing to a more diverse universe of companies.”

About 6th Avenue Capital 

6th Avenue Capital is changing the small business financing landscape by providing fast, secure and equitable access to capital for growth and expansion. A leading source of alternative financing, 6th Avenue Capital provides necessary short-term bridge financing to SMBs. Our ACH Advances (also known as Merchant Cash Advances), offer a lump sum payment in exchange for a portion of future receivables at a discounted price. Small businesses can access short-duration, unsecured funding, up to $500K, within 24-48 hours, with no full personal guaranties and convenient repayment options (daily, twice weekly, and weekly). Member ILPA and SBFA. For more information, visit www.6thavenuecap.com.

Middlemarch Secures $100M Investment for Mutuo Financiera from Crayhill Capital

Mutuo Financiera Closes USD 100 Million Financing Facility Provided by Crayhill Capital Management

Mexico City, Mexico, August 14, 2019Mutuo Financiera, a vehicle fleet leasing company focused on clean energy passenger transportation in Mexico, today announced that it has closed on a senior secured credit facility provided by Crayhill Capital Management (“Crayhill”), a New York-based private credit manager and asset-based lender.

The credit facility, which has a capacity of up to $100 million, will be used for the acquisition of new compressed natural-gas vehicles to be leased to commercial and passenger transportation fleets across Mexico. The Mexican transport market is rapidly transitioning to cleaner fuels, driven by government directives and economically favorable solutions for lessees.

“Mutuo’s edge in the Mexican market comes from its ability to construct use-based payment leases that fit the operating profiles of fleet operators and its digitally enabled customer service platform,” stated Antonio Diego González-Karg, Chief Executive Officer of Mutuo. “We are excited about this new partnership with Crayhill which will allow us to continue achieving our goals of delivering and scaling a better automated fleet management solution and customized leasing products for the benefit of our customers.”

Demetris Papademetriou, Board Member of Mutuo and Partner at Middlemarch Partners, a NY-based Merchant Banking firm that helps develop Mutuo’s growth and capital strategy, said, “As investors and advisors to energy-related shared savings products, we recognized a unique opportunity to finance the growth of a dynamic sector for Mutuo.”

Mutuo plans to grow aggressively throughout Mexico to improve the way passenger transportation is managed around the country and help transition to more efficient sources of energy, better urban mobility, and access to remote financial services.

About Mutuo Financiera

Mutuo Financiera, a Mexican fintech company, is a financial institution that leverages AI and other technological tools to offer productive credit with an innovative approach. Mutuo facilitates access into the financial sector to the small and medium-sized enterprises, in order to enable their businesses growth. Mutuo promotes the use of cleaner and cost-efficient energies, such as Compressed Natural Gas (CNG), a type of fuel that has demonstrated a 20-30% reduction in carbon monoxide and an 80% reduction in nitrous oxide emissions, thus reducing global warming. For more information, visit www.mutuofinanciera.com or email sgazca@mutuofinanciera.com.

About Crayhill Capital Management

Crayhill Capital Management LP is a New York-based alternative asset management firm that specializes in asset-based, private credit opportunities. The firm was launched in August 2015 and is registered with the U.S. SEC as an investment adviser. Crayhill strives to deliver capital solutions through tailored financing structures. Its asset-based investment strategies draw on deep sector expertise and relationships throughout the structured finance and specialty finance markets. For more information, please visit www.crayhill.com or email info@crayhill.com.

About Middlemarch Partners

Middlemarch Partners is a New York-based merchant bank. The firm has two operating divisions. Middlemarch Securities LLC is a FINRA-registered broker-dealer that assists companies with capital raises, and M&A advisory services and is focused on alternative finance, payments, financial technology and business services sectors where companies require sophisticated equity and debt investment solutions ranging from $25 – $500 million. Middlemarch Capital Partners is a registered investment advisor that designs special purpose investment vehicles that deploy investment capital in venture and growth capital transactions ranging from $5 to $20 million. Its Limited Partners are institutional investors and accredited individual investors. The firm can serve as an independent sponsor of transactions but frequently co-invests in transactions alongside blue-chip lead sponsors that are sourced by Middlemarch Securities. For more information about Middlemarch Partners LLC, please visit www.middlemarchllc.com.