Private Debt Firm Brightwood Boosts Lending Amid M&A Uptick

(Bloomberg) -- Brightwood Capital Advisors has wrapped up one of its busiest periods for middle-market lending, helped by a pick-up in acquisition financing and a brightening economic outlook.

The New York-based private debt firm, which manages more than $4 billion in assets, deployed or committed capital to 25 new or existing borrowers between the fourth quarter of 2020 and the first quarter of this year, according to a statement. That’s an increase from 22 during the same period a year ago.

As part of that deal flurry, Brightwood served as lead lender and administrative agent on four senior secured term loans each ranging between $100 million and $200 million, according to a person with knowledge of the matter, who asked not to be identified because the terms are private.

Brightwood said notable transactions in the period straddling the final quarter of 2020 and the first three months of this year include debt extended to Lab Logistics, a provider of transportation and logistics services for medical labs and hospitals, Zips Car Wash, and identity and theft protection company Sontiq for its purchase of CyberScout, according to the statement. It also provided senior secured debt to BioVectra Inc., a Canadian contract development and manufacturing organization.

Volume in the $975 billion private debt market is expected to increase this year in tandem with rising optimism about the economic outlook as Covid-19 vaccines are rolled out, and as investors globally reach for higher yields in an ultra-low rate environment.

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