Key Takeaways
- • Phoenix Merchant Partners and Texas Capital Alternative Asset Management have formed a strategic relationship to expand financing solutions for core middle-market businesses, targeting companies with annual revenues between $25 million and $300 million.
- • Phoenix Merchant Partners has raised over $900 million for its private credit strategy focused on mid-size companies, positioning the firm as a significant player in the underserved middle-market financing space.
- • The partnership leverages complementary expertise: Phoenix Merchant brings deep capital markets knowledge and transaction sourcing capabilities, while Texas Capital provides established middle-market banking infrastructure and client relationships.
- • The collaboration addresses a financing gap for mid-market borrowers not backed by private equity, offering customized debt and credit solutions across resilient U.S. industries.
- • Tim Throsby, former CEO of Barclays Investment Bank, chairs Phoenix Merchant Holdings, bringing institutional credibility and extensive banking experience to the partnership's execution.
Summary
Phoenix Merchant Partners, an independent investment firm specializing in middle-market financing solutions, has announced a strategic relationship with Texas Capital Alternative Asset Management to serve the core middle-market segment. The partnership combines Phoenix Merchant's $900 million private credit platform with Texas Capital's established middle-market banking operations, creating a more comprehensive financing platform for privately held companies with annual revenues between $25 million and $300 million.
Phoenix Merchant Partners operates as a solutions-first lender and investor, employing a purpose-built approach to address financing challenges across the mid-market universe. The firm differentiates itself through strong capital markets expertise, creative structuring processes, and the ability to craft customized financing solutions tailored to specific borrower needs. The newly launched partnership extends this capability by integrating Texas Capital's existing middle-market banking relationships and infrastructure, enabling both firms to serve a broader client base with enhanced service delivery.
The strategic relationship reflects growing institutional demand for alternative financing in the middle market, a segment often underserved by traditional bank lending and beyond the reach of mega-cap private equity. Phoenix Merchant's track record includes notable transactions such as $13 million in growth financing for HCT Renewable Energy through an asset-based facility, demonstrating the firm's ability to execute across diverse industries. The partnership structure allows Texas Capital to expand its alternative asset management offerings while providing Phoenix Merchant with accelerated distribution of its private credit strategies.
Leadership experience strengthens the partnership's institutional foundation. Tim Throsby, Chairman of Phoenix Merchant Holdings and Managing Partner, brings significant banking pedigree as former CEO of Barclays Bank PLC, where he oversaw the Investment Bank, Markets, and Corporate Bank divisions. This senior-level involvement signals institutional commitment to building a sustainable, scalable middle-market financing platform capable of competing with established sponsors and alternative credit providers.
Phoenix Merchant Partners operates as a solutions-first lender and investor, employing a purpose-built approach to address financing challenges across the mid-market universe. The firm differentiates itself through strong capital markets expertise, creative structuring processes, and the ability to craft customized financing solutions tailored to specific borrower needs. The newly launched partnership extends this capability by integrating Texas Capital's existing middle-market banking relationships and infrastructure, enabling both firms to serve a broader client base with enhanced service delivery.
The strategic relationship reflects growing institutional demand for alternative financing in the middle market, a segment often underserved by traditional bank lending and beyond the reach of mega-cap private equity. Phoenix Merchant's track record includes notable transactions such as $13 million in growth financing for HCT Renewable Energy through an asset-based facility, demonstrating the firm's ability to execute across diverse industries. The partnership structure allows Texas Capital to expand its alternative asset management offerings while providing Phoenix Merchant with accelerated distribution of its private credit strategies.
Leadership experience strengthens the partnership's institutional foundation. Tim Throsby, Chairman of Phoenix Merchant Holdings and Managing Partner, brings significant banking pedigree as former CEO of Barclays Bank PLC, where he oversaw the Investment Bank, Markets, and Corporate Bank divisions. This senior-level involvement signals institutional commitment to building a sustainable, scalable middle-market financing platform capable of competing with established sponsors and alternative credit providers.
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