Key Takeaways
- • Phoenix Merchant Partners and Texas Capital Alternative Asset Management (TCAAM), a wholly owned subsidiary of Texas Capital Bancshares (NASDAQ: TCBI), announced a strategic relationship to provide customized capital solutions and direct lending to the core middle market.
- • Phoenix will launch Spurstone Credit, a perpetual-life, non-traded closed-end credit fund, in the third quarter of 2026, headquartered in Dallas, Texas.
- • Spurstone has already attracted interest from a group of anchor institutional investors, per the announcement.
- • The fund's mandate targets senior secured financing for core middle-market businesses with annual revenues between $100 million and $1 billion.
- • Spurstone will be advised by Ryestone Advisors LLC, a newly formed Phoenix-sponsored registered investment adviser that is applying for SEC registration; TCAAM will be a minority economic investor in that adviser.
Summary
Phoenix Merchant Partners, LP, an independent alternative asset manager focused on middle-market private credit, and TCAAM announced a strategic relationship aimed at providing customized capital solutions and direct lending to the core middle market across a range of industries. The arrangement combines Texas Capital's corporate and investment banking coverage network with Phoenix's structuring, underwriting, and multi-cycle portfolio management expertise.
Phoenix will launch its first vehicle, Spurstone Credit, in the third quarter of 2026. Structured as a perpetual-life, non-traded closed-end credit fund, Spurstone will be headquartered in Dallas. According to the announcement, the vehicle has already drawn interest from a group of anchor institutional investors. Its mandate centers on senior secured financing for core middle-market businesses with annual revenues of $100 million to $1 billion that the companies say are underserved in private credit.
The strategy targets a liquidity gap for non-sponsored, family-owned, and founder-led mid-market enterprises that need flexible, non-dilutive senior capital for organic growth, acquisitions, and balance sheet optimization. Daniel Hoverman, Head of Corporate & Investment Banking at Texas Capital and President of TCAAM, said the partnership expands the bank's ability to offer proprietary private credit financing and that the Phoenix team shares its disciplined approach to asset structuring and capital preservation. Art Mbanefo, Founder and CEO of Phoenix, said proprietary origination is the key differentiator in private credit and that the relationship provides access to founder-owned businesses across Texas, California, New York, and Illinois.
Spurstone will be advised by Ryestone Advisors LLC, a newly formed Phoenix-sponsored registered investment adviser that is currently applying for registration with the U.S. Securities and Exchange Commission. TCAAM will hold a minority economic interest in that adviser. The announcement did not disclose fund size or target capital.
Phoenix will launch its first vehicle, Spurstone Credit, in the third quarter of 2026. Structured as a perpetual-life, non-traded closed-end credit fund, Spurstone will be headquartered in Dallas. According to the announcement, the vehicle has already drawn interest from a group of anchor institutional investors. Its mandate centers on senior secured financing for core middle-market businesses with annual revenues of $100 million to $1 billion that the companies say are underserved in private credit.
The strategy targets a liquidity gap for non-sponsored, family-owned, and founder-led mid-market enterprises that need flexible, non-dilutive senior capital for organic growth, acquisitions, and balance sheet optimization. Daniel Hoverman, Head of Corporate & Investment Banking at Texas Capital and President of TCAAM, said the partnership expands the bank's ability to offer proprietary private credit financing and that the Phoenix team shares its disciplined approach to asset structuring and capital preservation. Art Mbanefo, Founder and CEO of Phoenix, said proprietary origination is the key differentiator in private credit and that the relationship provides access to founder-owned businesses across Texas, California, New York, and Illinois.
Spurstone will be advised by Ryestone Advisors LLC, a newly formed Phoenix-sponsored registered investment adviser that is currently applying for registration with the U.S. Securities and Exchange Commission. TCAAM will hold a minority economic interest in that adviser. The announcement did not disclose fund size or target capital.
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