Welcome
Headquartered in Norwalk (CT), Encina Private Credit (EPC) partners with direct lenders to provide first-out enterprise value loans as part of a unitranche solution to private equity-sponsored borrowers.Benefits for Our Direct Partners
Customer Focused
Capable & Reliable
Efficient
Customer Focused
-
Flexible
As a non-bank specialty finance company, EPC is not subject to leveraged lending guidelines. We are less sensitive to the total leverage ratio of a given borrower and whether a direct lender’s term loan is structured as covenant-lite.
-
Enhance Yield
We can take a portion of first-out term loan at a compressed yield in order to enhance the direct lender’s yield on its last-out position.
-
Buyout Option
If necessary on a given transaction, the direct lender may purchase our first-out position at par plus accrued interest (no prepayment penalty) on short notice.
Capable & Reliable
-
Reduce Operational Burden
We take on the contingent funding obligation and the operations headache associated with the revolver while the direct lender can focus on deploying fully-funded term loans.
-
Scalable
We can commit up to $50mm on a single transaction, which enables us to scale our first-out facilities over time as a given borrower grows and eliminates the need for a first-out partner on most opportunities.
-
Patient & Stable Capital
We have structured the platform so that we can take a patient buy-and-hold approach that is less impacted by regulatory changes or disruption in the broader capital markets.
Efficient
-
Speed
We seek to provide a “read” on any given opportunity within 48 hours and move rapidly through approval and documentation. We have designed our process to be consistent and predictable. We believe strongly that a first-out lender should not be the bottleneck in regards to a transaction closing. Most of our team members have worked together for many years at other major financial institutions and are accustomed to delivering within tight timeframes.
-
Programmatic Approach
Our objective is to establish programmatic arrangements with direct lenders and sponsors by negotiating a master Agreement Among Lenders once and then using the same form for each subsequent transaction.