Sponsor Finance

First Merchants Bank Sponsor Finance is built to support private equity firms. Our focus is to eliminate your execution risk. As a cash flow lender, we enable private equity sponsor buyouts, acquisitions, refinancings and recapitalizations.

We believe the senior credit facility should be the easiest piece of the capital structure to assemble. Too often, that isn’t the case. Combining your diligence, our experienced team and a streamlined approval process allows us to respond quickly and provide certainty of close. Also, clear underwriting guidelines provide you clarity on what structure will work for your next opportunity. 

Clients look to us when they need

Target Companies

• U.S.-Based
• Greater than $2 million EBITDA
• Greater than $10 million revenue
• Industry agnostic
• Strong free cash flow
  

Loan Characteristics

• Cash flow-based
• Five-year term/10-year amortization
• Hold up to $25 million commitment
• Syndicate up to $50 million commitment
• Stock pledge required

Our deal team has worked with private equity firms on new business, underwriting and portfolio management. The team also has significant private equity investment experience, spanning an array of products, industries and stages of business growth. Our professionals bring a thoughtful approach to due diligence and private equity references. Since 2015, First Merchants Sponsor Finance Group has led the financing of over 225 transactions with committed capital totaling in excess of $1.75 billion including 27 new platforms and 15 add-on acquisitions in 2023.

We serve a wide breadth of clients, from family offices and small firms to large private equity firms. Below is a sample of our PE firm clients: