NXT Capital has announced that its subsidiary, NXT Capital SBIC (NXT SBIC), has received a license from the United States Small Business Administration to operate as a Small Business Investment Company.
NXT Capital plans to invest up to $75 million in equity in NXT SBIC over the next three years. When combined with $150 million of ten-year debt from the SBA, this will provide as much as $225 million of capital to support the growth of the firm’s NXT Venture Finance group. NXT Capital also recently closed two separate senior secured credit facilities totaling $75 million. This amount, plus NXT SBIC and existing sources of capital, will give NXT Venture Finance approximately $500 million to invest in emerging growth companies.
“We are very appreciative of the support we have received from the SBA and our other financing partners,” said Robert Radway, NXT’s Chairman and CEO. “This substantial, stable capital base will help drive NXT Venture Finance’s ongoing growth and success.”
NXT Capital Venture Finance offers senior and subordinated term loans in the $1 million to $20 million range to growth companies backed by venture capital and private equity firms, particularly those in the technology and life science sectors. Target clients range from pre-revenue companies to late-stage businesses seeking growth capital. NXT Capital Venture Finance has offices in Boston and Silicon Valley (www.nxtcapital.com/venture-finance).
“Securing the SBIC license and closing on both credit facilities are significant milestones,” said Jan Haas, Group Head, NXT Venture Finance. “With a strong balance sheet, highly experienced team and focus on providing less dilutive and more flexible forms of capital, NXT Venture Finance is ideally positioned to meet the financing needs of entrepreneurs and their companies.”
NXT Capital provides structured financing to middle-market and growth companies through its Corporate Finance, Real Estate Finance and Venture Finance groups, originating transactions directly on a national basis. The company targets senior financing opportunities of up to $150 million with a hold size up to $50 million. NXT Capital is led by former principals of Merrill Lynch Capital and was formed in 2010 by Stone Point Capital and the founding management team. The firm is based in Chicago with offices in New York, Atlanta, Boston, Dallas, Newport Beach and Silicon Valley (www.nxtcapital.com).
