Kayne Anderson BDC buys stake in US private credit platform

Kayne Anderson BDC (KBDC) has bought a minority stake in US private credit platform SG Credit Partners so it can provide a greater breadth of financing solutions to its clients.

Formed in 2013, SG Credit focuses on the lower middle market and has to date committed over $1bn (£746m) across its three lending verticals – commercial finance, consumer products and software and technology.

The transaction will be structured as an $80m term loan facility, a $34m delayed draw term loan facility and a $12m common equity investment.

SG Credit plans to use the funding to help grow existing verticals and develop adjacent businesses.

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KBDC, which is managed by its investment adviser, KA Credit Advisors, an affiliate of Kayne Anderson Capital Advisors, said that the acquisition complements its own private credit investment capabilities, The deal will introduce more diversification to its proprietary investment channels and is expected to boost 2025 earnings, it said.

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Marc Cole, co-founder and chief executive of SG Credit, said: “This collaboration will not only support our growth with additional capital but also enable us to offer innovative, value-added financing solutions to a wider range of companies.”

Frank Karl, senior vice president of KBDC, said: “There have been a number of highly successful investments by BDCs and credit managers into asset-based platforms and finance companies in the past few years.

“We have known the team at SG Credit for many years and they have delivered a strong track record of returns for their investors. We think that their investment culture is well-aligned with KBDC’s and are excited to partner with the team to provide a greater breadth of financing solutions to our clients.”

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