NXT Capital recently closed a $12.8MM first mortgage loan for the acquisition of a 116,000 square foot office-loft located in the River North submarket of Chicago, Illinois. NXT’s commitment allowed the borrower to acquire the property and provides funds for future development.

Keys to the Deal:

-Experienced, local sponsorship
-Sizable value-add component with below market rental rates
-Attractive purchase basis relative to recent comparable sales
-Solid submarket dynamics

The loan was placed through Adam Levinson with the Chicago office of BGC Partners.

“Joe is an outstanding addition to the NXT Capital Venture Finance team,” said Jan Haas, Group Head. “His broad network and expertise deploying growth capital to later stage technology companies will help NXT Venture Finance further its mission of accelerating innovation with efficient capital.” 

“I’m excited to join the NXT Capital Venture Finance team,” said Porten. “As emerging companies stay private longer and continue to invest heavily ahead of growth, there is increasing demand for late-stage capital. NXT’s platform is ideally positioned to provide efficient, flexible growth capital to meet that demand.”

Porten was most recently a Vice President at Battery Ventures, where he focused on technology business models in B2B and B2C software, tech-enabled business services and information services. While at Battery, Porten’s investments included Avalara and DrillingInfo.

Previously, Porten was an associate with Spectrum Equity Investors, a technology-focused private equity firm with $4 billion under management. His experience also includes roles at Concert Capital Partners and LaSalle Bank Corporation.

Porten earned an M.B.A. in finance and entrepreneurship from the University of Chicago Graduate School of Business and a B.A. in economics from the University of Chicago.

About NXT Capital Venture Finance: NXT Capital Venture Finance serves entrepreneurs by providing less dilutive, more flexible forms of capital. With offices in Boston and Silicon Valley, NXT Capital Venture Finance has more than $500 million of committed capital to invest in emerging growth companies backed by venture capital and private equity firms, particularly those in the technology and life science sectors. Target clients range from pre-revenue companies led by dedicated entrepreneurs to late-stage, proven businesses seeking $1 million to $20 million of growth capital. For more information, see www.nxtcapitalvf.com.

About NXT Capital: NXT Capital provides structured financing solutions to middle-market and emerging growth companies, as well as real estate investors, through its Corporate Finance, Equipment Finance, Venture Finance and Real Estate Finance groups. Based in Chicago with offices in New York, Atlanta, Boston, Dallas, Phoenix, Newport Beach, San Francisco and Silicon Valley, NXT Capital targets senior financing opportunities up to $150 million with a hold size up to $50 million. See www.nxtcapital.com.

NXT Capital recently closed a $25.4MM first mortgage loan for the acquisition and renovation of a 226-unit, Class “B” apartment project known as Brittany Court, located in a suburb of Chicago, Illinois.

Keys to the Deal:

-93%+ occupancy with significant going-in cash flow
-Strong submarket fundamentals with high occupancy and no new construction
-Significant value-add opportunity through common area and unit interior capital improvements
-Excellent sponsorship with a solid track record executing the business plan

 The loan was placed through Richard Jordan with the Atlanta, Georgia office of CBRE Capital Markets.

mBlox has one of the largest and most reliable global messaging platforms used by solution providers, brands and marketing and government agencies. mBlox’s global network reaches more than 800 mobile operators and 5.8 billion devices to ensure the best rates, coverage and delivery for business-to-consumer SMS campaigns. mBlox’s major venture backers include Norwest Venture Partners, Scale Venture Partners and Trident Capital.

Most recently, the company has increased its investment in broader scale mobile messaging by adding push technology to its platform, collecting data about consumer behaviors and providing behavioral insight back to brands. mBlox’s latest innovation is the mBlox Engagement Manager, an emerging technology that makes it easy to create and send basic or rich messages and push notifications. The Engagement Manager dashboard allows businesses to manage campaigns while viewing customer responses in real-time from a PC or tablet. Features like Geofencing allow businesses to target relevant users at the right time and place with contextually relevant communications.

“We have built a great franchise for enterprises and ASP’s in the mobile space, and plan to evolve our platform’s capabilities to continue to address the problems that our customers are trying to solve,” said Tom Cotney, Chief Executive Officer, mBlox. “NXT has given us the upside of a start-up by buying into our business plan and stepping up with a financing solution. The result is a subordinated term debt facility tailored to our needs, not just a cookie cutter structure, that is designed to support and grow with us over the long-term.”

“We are pleased to join the broader mBlox team as one of its financing partners during this exciting time of growth,” said Anurag Chandra, Managing Director, NXT Capital Venture Finance. “Tom’s refreshed strategic vision leverages the company’s substantial strengths and innovations like Engagement Manager demonstrate mBlox’s continued dedication to maintaining its leadership in mobile messaging applications and services that enhance customer loyalty.”

ABOUT NXT CAPITAL VENTURE FINANCE:  NXT Capital Venture Finance serves entrepreneurs by providing less dilutive, more flexible forms of capital. With offices in Boston and Silicon Valley, NXT Capital Venture Finance offers senior and subordinated term loans in the $1 million to $20 million range to emerging growth companies backed by venture capital and private equity firms, particularly those in the technology and life science sectors. Target clients range from pre-revenue companies led by dedicated entrepreneurs to late-stage, proven businesses seeking more efficient growth capital. For more information, see www.nxtcapitalvf.com.

ABOUT NXT CAPITAL:  NXT Capital provides structured financing solutions to middle-market and emerging growth companies, as well as real estate investors, through its Corporate Finance, Equipment Finance, Venture Finance and Real Estate Finance groups. Based in Chicago with offices in New York, Atlanta, Boston, Dallas, Phoenix, Newport Beach, San Francisco and Silicon Valley, NXT Capital targets senior financing opportunities up to $150 million with a hold size up to $50 million. For more information, see www.nxtcapital.com.

ABOUT MBLOX:  mBlox, the leader in mobile engagement, helps brands, agencies and enterprises create meaningful connections with their customers on mobile devices anytime and anywhere. Our network reaches more than 800 mobile operators around the world and enables businesses to reach 6 billion devices. We make it easy to use interactive text message campaigns, push notifications and geolocation in order to drive revenue, lifetime customer value and ROI. For more information, visit www.mblox.com or @mblox on Twitter.

Smartt joins NXT Capital from CIT, where he was a Director in the company’s Healthcare group. His experience also includes serving as a Vice President in GE Capital’s Healthcare Financial Services group.

“We’re excited to have a professional of Stuart’s caliber join NXT Capital and lead our healthcare group,” said John Finnerty, Group Head, Corporate Finance. “Stuart’s expertise is a valuable addition to NXT’s proven ability to serve middle-market healthcare sponsors and companies.”

Under Smartt’s leadership, NXT will continue to provide a full range of financing products to healthcare companies, including senior, stretch senior, unitranche and second lien term loans to facilitate leveraged buyouts, refinancings, recapitalizations and add-on acquisitions for middle market companies with $5 million to $75 million of EBITDA. 

“NXT is a dynamic company with a well-deserved reputation for superior, client-focused execution,” said Smartt. “I look forward to further expanding NXT’s footprint in the healthcare sector and building strategic relationships with best-in-class healthcare sponsors and management teams.”

NXT Capital provides structured financing solutions to middle-market and emerging growth companies, as well as real estate investors, through its Corporate Finance, Equipment Finance, Real Estate and Venture Finance groups. Based in Chicago, NXT Capital has offices in New York, Atlanta, Boston, Dallas, Phoenix, Newport Beach, San Francisco and Silicon Valley. See www.nxtcapital.com for more information.

NXT Capital Venture Finance’s new portfolio companies include MetricStream, mBlox, Savo, ThreatMetrix, Vantrix and two undisclosed investments. These companies are backed by more than 30 venture sponsors including August Capital, Oak Investments, Tudor Ventures, Norwest Venture Partners, USVP, SAP Ventures, Tenaya Capital, HarbourVest and Foundry Group.

With this performance, NXT Venture Finance has achieved its targeted steady state investment pace just over a year from its launch. The group’s committed capital base exceeds $500 million.

“NXT Venture Finance’s first quarter results demonstrate the strength of our platform’s investment capabilities, as well as our reputation as experienced growth capital providers and true investment partners to entrepreneurs and VCs,” said Jan Haas, Group Head. “Our rapid investment pace also reflects increasing demand for alternative sources of growth capital such as venture debt, which we are well positioned to meet.”

Recent data from the National Venture Capital Association and Thomson Reuters reveals a significant decline in reported liquidity events for venture-backed companies, with year-over-year exits off 73% and announced M&A deals falling to lows not seen since 1995. This decreased exit pace suggests that emerging companies and their boards need to be prepared to operate as private, independent entities for much longer than anticipated.

“Limited exit opportunities create a tremendous need for capital to fund new initiatives, make acquisitions and invest in next generation products,” said Haas. “Many companies are finding that venture debt is a cost-effective equity substitute that fuels growth without disrupting the existing investor base.”

ABOUT NXT CAPITAL VENTURE FINANCE:

NXT Capital Venture Finance serves entrepreneurs by providing less dilutive, more flexible forms of capital. With offices in Boston and Silicon Valley, NXT Capital Venture Finance offers senior and subordinated term loans in the $1 million to $20 million range to emerging growth companies backed by venture capital and private equity firms, particularly those in the technology and life science sectors. Target clients range from pre-revenue companies led by dedicated entrepreneurs to late-stage, proven businesses seeking more efficient growth capital. For more information, see www.nxtcapitalvf.com.

ABOUT NXT CAPITAL:

NXT Capital provides structured financing solutions to middle-market and emerging growth companies, as well as real estate investors, through its Corporate Finance, Equipment Finance, Venture Finance and Real Estate Finance groups. Based in Chicago with offices in New York, Atlanta, Boston, Dallas, Phoenix, Newport Beach, San Francisco and Silicon Valley, NXT Capital targets senior financing opportunities up to $150 million with a hold size up to $50 million. For more information, see www.nxtcapital.com.

NXT Capital recently closed a $14.5MM first mortgage loan for the acquisition of a 106,000 square foot retail center located in Harlingen, Texas. NXT’s commitment allowed the borrower to acquire the property and provides funds for expansion of the center.

Keys to the Deal:

-Experienced, local sponsorship
-Credit anchor tenants on long-term leases
-93% physical occupancy with strong cash flow generating positive debt service coverage
-Sizable value-add component through the construction of a recently executed build-to-suit lease

The loan was placed through Curtis Jaggars with Quadrant Realty Finance, located in Dallas, Texas.

NXT sold securities rated from AAA through BB and retained all the equity interests.  Pricing on the AAA-rated securities of LIBOR+1.50% was a post-crisis low for an exclusively middle-market CLO. Wells Fargo Securities, LLC served as the Lead Manager, Structuring Agent and Bookrunner for the transaction and BMO Capital Markets GKST Inc. served as Co-Lead Manager.

“Robust investor response to the CLO by repeat and new investors is further validation of NXT’s proprietary direct loan origination capability and our disciplined risk management practices,” said NXT’s Chairman and CEO, Robert Radway. “The CLO’s success also illustrates the growing recognition among institutional investors of the diversification benefits that middle-market loan assets provide to their portfolios, as well as the consistent performance and attractive risk adjusted returns of middle-market loans throughout market cycles.”

“NXT expects to be a regular CLO issuer as we continue to expand and diversify our funding platform,” noted Neil Rudd, Chief Financial Officer. “This provides NXT with stable and competitively priced financing, enabling the business to compete effectively in the marketplace and provide enhanced returns to our investors.”

NXT Capital provides structured financing solutions to middle-market and emerging growth companies and real estate investors through its Corporate Finance, Real Estate Finance, Equipment Finance and Venture Finance groups. Based in Chicago, NXT Capital has offices in New York, Atlanta, Boston, Dallas, Phoenix, Newport Beach, San Francisco and Silicon Valley. See www.nxtcapital.com for more information.

NXT Capital was the Sole Lead Arranger, Sole Bookrunner and Administrative Agent for this transaction.

Based in Denver, Colorado, glōProfessional’s passionate commitment to research, education and innovation continues to inspire professional and at-home skin care, hair care and mineral-based make-up collections to deliver radiant beauty for healthy, glowing skin and hair. Including glō•therapeutics skin care, glō•minerals make-up and glō•essentials hair care, glōProfessional is the premier resource for advanced skin therapies, for women and men of all ages.

Swander Pace Capital is a leading private equity firm specializing in investments in growth-oriented, lower middle-market consumer companies. Since its inception in 1996, Swander Pace has used its expertise in this industry to pursue a consistent strategy of acquiring or investing in consumer products companies with leading market positions in attractive, defensible niches. With offices in San Francisco and New Jersey, Swander Pace provides portfolio companies with a unique mix of financial and strategic consulting support to create long-term investment value. Swander Pace has led successful private equity investments in consumer companies with total revenues in excess of $2.0 billion.

NXT Capital provides structured financing solutions to middle-market and emerging growth companies, as well as real estate investors, through its Corporate Finance, Equipment Finance, Venture Finance and Real Estate Finance groups. Based in Chicago with offices in New York, Atlanta, Boston, Dallas, Newport Beach, San Francisco and Silicon Valley, NXT Capital targets senior financing opportunities of up to $150 million with a hold size up to $50 million. See www.nxtcapital.com for more information.

NXT Capital Equipment Finance offers a full range of flexible financing solutions to middle-market companies nationwide. The group will provide loans and leases from $2 million to $20 million to finance new and used equipment for companies with revenues of $50 million and above across most industries. Products include secured term loans, tax-oriented leases, finance leases, operating leases, TRAC leases and sale-leaseback transactions.

Launching Equipment Finance is another significant step in NXT Capital’s development as a diversified commercial finance company. The new group complements NXT Capital’s existing Corporate Finance, Real Estate Finance and Venture Finance groups, extending the company’s reach to middle-market companies whose growth depends on capital-intensive assets. 

“We’re delighted to welcome Michael Gay and a talented team of equipment financing professionals to NXT Capital,” said Robert Radway, Chairman and CEO. “Equipment finance is a business we’re very familiar with and one that is a logical, attractive expansion of the NXT platform.”

NXT Capital Equipment Finance will address an important gap in the market. “Many middle-market companies continue to suffer from a lack of access to capital to obtain essential equipment,” said Michael Gay, group head of NXT Capital Equipment Finance. “NXT Capital Equipment Finance is ideally positioned to serve these companies, providing the creative, reliable financing solutions they need.”

NXT Capital provides structured financing solutions to middle-market and emerging growth companies, as well as real estate investors, through its Corporate Finance, Equipment Finance, Real Estate and Venture Finance groups. Based in Chicago, NXT Capital has offices in New York, Atlanta, Boston, Dallas, Phoenix, Newport Beach, San Francisco and Silicon Valley.