Amalgamated Bank has formed Amalgamated Capital, a New York-based division of the bank that will provide senior cash flow debt financing to lower middle market companies.
Reportedly, the new division – which will be under the direction of Timothy Clifford, will target leading private equity firms and other investors who focus on acquiring and growing middle market companies. Prior to joining Amalgamated Bank, Mr. Clifford, was a managing director and principal at Churchill Financial and also served as head of the firm’s Boston office,
Derrick Cephas, president and CEO of Amalgamated Bank, said: “This new lending platform is an important step for us as a bank and for the markets we will be serving. Because of dislocations in the capital markets system at the present time, this is a very attractive business and an excellent place to put a portion of our liquidity to work. The fact that we have established Amalgamated Capital as a separate, new division of the bank underscores our commitment to the leveraged lending and private equity markets. In doing so, we believe we will provide an important new source of capital to private equity-backed middle market companies which have fewer and fewer financing options as a significant group of traditional lenders have either exited the business entirely or no longer have capital to deploy.
Tim Clifford, who has been appointed executive vice president and director of Amalgamated Capital and will serve on our credit committee, brings to us strong capabilities and terrific relationships with a broad cross-section of leading private equity firms, he added.
Mr. Clifford said: Our target market will be smaller middle market companies with enterprise values under $150 million. We intend to grow our business by pursuing transactions in partnership with proven management teams and private equity sponsors who invest in companies generally with EBITDA between $3 million and $20 million. Our goal is to build a national franchise serving a cross-section of industries that will include consumer, distribution, education, healthcare, industrial, manufacturing, services and software. Right now, we are actively targeting companies to lead senior cash flow debt financing needs of $5 million to $60 million.