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, 2019 – 6th 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.