The New Year has seen one of its first private debt launches, with the formation of Scargo Hill Capital to target lower mid-market companies.
The new firm will extend senior secured credit to retailers, makers of consumer products and those in the broader supply chain, it said in a statement announcing its launch.
The co-founders of the firm are Andrew Moser, who will serve as chief executive officer; Thomas Lynch, who will be the chief risk officer; and Mark Gallivan, who will serve as a principal. Moser and Lynch are also managing partners.
Moser most recently worked Monroe Capital as its co-head of retail and consumer products and previously founded Salus Capital Partners, where he served as president and CEO, according his LinkedIn profile. Lynch was a senior managing director at Great Oak Advisors, while Gallivan is also formerly of Salus, their LinkedIn profiles showed.
“The ongoing credit challenges and widening gap across lower middle-market companies has made it very challenging for them to access adequate liquidity,” Moser said in the statement.
The company did not immediately comment further.
Its strategic and lead investors are Schottenstein Family of Companies affiliate SB Capital Group and Stephen Miller, the chief executive officer of 360 Merchant Solutions, according to the statement.
Scargo Hill is the latest in a stream of new private debt practices. At the end of last year, Edward Cerny David Petrucco and Mark Gudis, all formerly of the Blackstone Group, launched Backcast Partners. Cerny and Petrucco also established Kayne Anderson Capital Advisors’ mid-market lending arm. 2016 also saw multiple private equity firms add private credit to their practices as well as the launch of business development company Owl Rock Capital Partners.