Old Second Bank has formed O2 Sponsor Finance to provide support to private equity sponsors.
The senior team of O2 Sponsor Finance is led by President Joe Gaffigan, the former president and co-founder of TCF Capital Funding. Mr. Gaffigan led TCF Capital Funding from 2012 to 2021 until TCF Bank was acquired by Huntington National Bank in June 2021. He remained with Huntington as the president of its sponsor finance unit until spinning out earlier this month to join Old Second and form O2 Sponsor Finance.
Old Second National Bank (NASDAQ: OSBC) is headquartered near Chicago in Aurora, Illinois and was founded in 1871. As of September 30, 2021, the bank has approximately $6.2 billion in assets.
“Our team is honored to become part of a bank with such a strong history. We look forward to helping drive future growth and building on Old Second Bank’s market momentum” said Mr. Gaffigan.
Joining Mr. Gaffigan at O2 Sponsor Finance is Thom Karle who worked with Mr. Gaffigan at TCF as a senior vice president from 2012 to 2021; Nick O’Brien who worked at TCF from 2015 to 2021; Monica Briseno who worked at TCF from 2012 to 2021; and Chris Gallun who has been with Huntington Sponsor Finance since 2019.
The former members of TCF’s sponsor finance team have closed more than $3 billion of commitments to over 100 private equity sponsors over their careers.
“We are drawn to the entrepreneurial culture of Old Second Bank, and we believe that our move to the bank will help us deliver flexible and creative solutions for our future private equity customers,” said Mr. Karle, who joins O2 Sponsor Finance as a senior vice president.
“We believe that the addition of O2 Sponsor Finance will allow Old Second Bank to continue to expand its market presence as a leading bank, better serve our customers and propel our strategy for the future,” said Jim Eccher, the president and chief executive officer of Old Second Bank. “I am excited to welcome this experienced team with a strong track record of success in sponsor finance.”
O2 Sponsor Finance operates as a division of Old Second and provides leveraged senior secured cash flow loans to lower middle-market manufacturing, distribution and service companies, located across the country, which have revenue of $10 million to $100 million and EBITDA of $2 million to $10 million.
The new group will primarily work with funded private equity sponsors but will also work with mezzanine funds, independent sponsors and family offices with hold sizes ranging from $5 million to $25 million per transaction and syndication capabilities up to $60 million.
O2 Sponsor Finance is headquartered in Chicago. Mr. Gaffigan can be reached via email at firstname.lastname@example.org and by phone at 312-900-9943, and Mr. Karle can be reached via email at email@example.com and by phone at 312-900-9951.
© 2022 Private Equity Professional | January 27, 2022