Alternative lender ThinCats has created a specialist private equity deal team to deal with pent-up demand for mid-market business funding.
The lender was accredited to offer the government-backed coronavirus business interruption loan scheme (CBILS) and the coronavirus large business interruption loan scheme (CLBILS) earlier this year.
However, ThinCats has noted that government lending schemes such as these have meant that banks and alternative lenders have been limited in how much “business as usual funding” they could support.
ThinCats found this to be particularly true when it came to management buy-outs, and some private equity-backed deals which were not eligible for CBILS or CLBILS funding.
This has resulted in “pent-up demand” for mid-sized businesses, ThinCats said.
“In the lower mid-market private equity sector we are gaining increasing support from private equity investors seeking funding for their existing portfolio companies or funding to acquire new businesses for their portfolios,” said a ThinCats representative.
“To meet this demand we have created a specialist private equity deal team comprising origination and credit experts to help deliver the speed, certainty and flexibility that is required.”
ThinCats was one of the lenders that called for an extension to the CBILS scheme in order to avoid a “liquidity squeeze” for businesses.