Twin Brook Capital Partners has provided a $55 million financing to assist Incline Equity Partners’ recapitalisation of an electrical parts manufacturer, a source familiar with the matter said on Wednesday.
The mid-market lender, a subsidiary of Angelo Gordon, served as joint lead arranger on the deal, the source added. Incline, the Philadelphia-based private equity firm, recapitalised Hartland Controls, an Illinois-based company that produces electrical parts for heating, ventilation and air conditioning.
The details of the financing were not disclosed.
An Angelo Gordon spokeswoman declined to comment. Both Incline and Hartland did not respond to media requests.
The direct lender and Incline had a pre-existing relationship, working together on recapitalisations of for Bacharach and Oracle Elevator, according to an Incline statement from last June.
Twin Brook targets such deals in the lower mid-market, where the firm finds favourable transaction structures and a less-crowded space, the firm told Private Debt Investor last September. The company targets companies with $5 million to $30 million in EBITDA.
The company added then that it prioritises lower-mid market deals with private equity sponsors, who can add a “very intense” due diligence to a transaction, which allows Twin Brook to “leverage off a lot of the third-party materials that they bring”.
Last July, the firm launched its second direct lending fund, targeting $1 billion, soon after closing its first fund on roughly $600 million. The vehicle, AG Direct Lending Fund II, had surpassed that goal as of November, raising $1.08 billion, according PDI data. Unlike the first, however, the second direct lending fund will allow levered and unlevered options to investors.
The Chicago-based direct lender provides financings up to $200 million with hold sizes ranging from $15 million to $50 million to US borrowers including manufacturing, insurance, aerospace, healthcare and software companies.