Gordon Brothers, BlackRock Kelso launch finance company

New York City --BlackRock Kelso Capital Corporation announced that it has completed a transaction with Gordon Brothers Group to launch Gordon Brothers Finance Company.



GBFC will be a majority-owned portfolio company of BlackRock Kelso, with Gordon Brothers Group owning a minority interest. As part of the transaction, GBFC acquired from GB Credit Partners, LLC its asset-based lending business as well as a portfolio of approximately $269 million of loans. GB Credit Partners, LLC is an affiliate of Gordon Brothers Group.



As a portfolio company of BlackRock Kelso, GBFC will continue its focus on asset-based lending. In addition, GBFC and Gordon Brothers Group have entered into a long-term, exclusive arrangement to continue to provide GBFC with access to the industry knowledge and valuation expertise of the entire Gordon Brothers Group platform. BlackRock Kelso invested $94.6 million in the transaction, and Gordon Brothers Group invested $35 million.



The existing management and investment teams of GB Credit Partners, led by Patrick J. Dalton, president and CEO, have joined Gordon Brothers Finance Company. “The creation of Gordon Brothers Finance Company puts us in an excellent capital position to grow our lending platform,” said Dalton. “We are now able to offer our middle market clients an even broader set of unique lending solutions utilizing our established network for originating loans and our proprietary valuation capabilities.”