Greenwich, CT – Stone Point Capital LLC announced today the capitalization of NXT Capital, LLC, a newly formed, commercial finance company serving middle-market borrowers and investors. Trident IV, L.P. and Trident V, L.P., private equity funds managed by Stone Point Capital, will be the lead investors in NXT Capital, along with the founding management team.
NXT Capital provides structured financing solutions to middle-market clients through its Corporate Finance and Real Estate Finance groups, originating transactions directly on a national basis. The foundation of the business is strong client focus, a cohesive and experienced team, and a broad product offering including senior secured, first mortgage, unitranche, junior secured and mezzanine financing, and equity co-investments. NXT Capital targets senior financing opportunities of up to $100 million with a typical hold size ranging from $10 million to $30 million. The company closed its first financing transaction at the end of April.
The management team is led by CEO Robert Radway, the former President of Merrill Lynch Capital, who is joined by Mike Litwin (Chief Credit and Risk Officer) and Neil Rudd (CFO). Messrs. Radway, Litwin and Rudd collectively founded Merrill Lynch Capital in 2002. The Corporate Finance Group is headed by John Finnerty, and the Real Estate Finance Group is co-headed by Craig Andreen and Kevin Rostowsky. Each member of the team was instrumental in building Merrill Lynch Capital into a leading middle-market commercial finance company from its launch in 2002 until its sale in 2008. Prior to the formation of Merrill Lynch Capital, they were key members of the executive leadership team at Heller Financial.
“We will be focusing on large, under-served segments of the middle-market. These are markets that we have operated in very successfully over the past two decades, and where our clients are actively seeking an alternative financing source,” said Radway. “Our flat, streamlined organization ensures the early involvement of decision makers, providing clients with a quick and reliable response to their financing needs. We work collaboratively and constructively at every step of the transaction process, and look forward to re-introducing our experienced team and way of doing business to NXT’s target markets.”
“Having managed risk successfully through several economic cycles, NXT’s management team has a proven track record and a strong following among its clients,” said Charles A. Davis, Stone Point Capital’s CEO. “We are enthusiastic about partnering with Robert Radway and his colleagues to build NXT Capital into a market-leading commercial finance business.”
NXT Capital is headquartered in Chicago with offices in New York, Atlanta, Dallas and Newport Beach.
Stone Point Capital LLC is a global private equity firm based in Greenwich, Connecticut, that has a 25-year record of making successful investments in the financial services industry. Stone Point Capital serves as the manager of the Trident Funds, which have raised more than $10 billion in committed capital to make investments in lending, banking, asset management and other financial services companies. For further information about Stone Point Capital, see www.stonepoint.com.