CrowdOut Capital Completes Successful Year During Pandemic
CrowdOut Surpasses $275 Million in Loans to Lower Middle-Market Companies
TX, January 12, 2021 — CrowdOut Capital LLC (the “Company”), a
pioneering non-bank lender for lower middle-market companies, today
announced the completion of its most successful year on record. Despite
challenging times in the capital markets, the Company returned more
capital to investors in 2020 than it had cumulatively since its founding
in 2015. CrowdOut continues to see an increasing volume of high-quality
investment opportunities as a result of structural/regulatory changes,
as well as the Company’s ongoing track record and successes.
CrowdOut achieved several milestones in 2020:
- 22 originated loans since inception totaling more than $275 million to borrowers
- Returned over $100 million of total capital to investors since inception
- 7 loans repaid during COVID with more than $51 million of principal returned to investors
- CrowdOut Credit Opportunities Fund (the “Fund”) achieved double-digit return, net of fees
Added key staff, including Senior Managing Director Kevin Ogilby, growing team to 12 professionals
“CrowdOut’s investment platform provides our investors ultimate flexibility in allocating capital to lower middle-market loans”, stated Alexander Schoenbaum, CEO of CrowdOut. “With the growth of the Fund, CrowdOut has expanded its investment capabilities to a diversified pool of proprietary platform loans.”
Leading the growth of the Fund is Kevin Ogilby, Senior Managing Director. “CrowdOut’s Fund provides its investors with an exciting and unique value proposition in the current yield-challenged environment—a diversified pool of senior term loans with collateral and covenant protection at attractive risk-adjusted rates of return. We are operating in a sweet spot in the lower to middle credit market with a seasoned team of investment professionals targeting 8-12% net IRR to our investors. I could not be more excited to take on this new role with such an innovative and growing company.”
CrowdOut funds loans as small as $4 million—typically ranging between $10-20 million—to companies with annual revenues between $10 – $500 million that are seeking capital to fuel growth, refinance existing debt or other corporate purposes. The Company’s loans touch a variety of market sectors and are national in scope. CrowdOut recently provided a $10 million senior secured term loan to a private equity-backed technology-based, oilfield services company. Most recently, CrowdOut partnered with two non-bank lenders to provide a $50 million senior credit facility to Williams Industrial Services Group, Inc.
About CrowdOut Capital LLC
CrowdOut Capital is a private-lending investment advisor providing profitable, lower middle-market companies more direct access to sources of debt capital. Its tech-enabled platform provides a solution for companies seeking non-dilutive capital while offering family offices, qualified purchasers, institutional and accredited investors the opportunity to invest in private debt on a deal-by-deal basis and through its discretionary Fund. CrowdOut has led more than $275 million in originations since inception.
Past investment results of the Fund, or any note issued by, CrowdOut (or investments otherwise made by the investment professionals of CrowdOut) are not a guarantee or indicator of future performance. Target returns are not a prediction, projection or guess of future performance and are based upon assumptions regarding future events that may prove to be inaccurate or may not materialize.