Traditional Asset-Based Lending: North Mill Capital

Business Overview

  • Acquired by SUNS in 2017, North Mill Capital LLC (“NMC” or “North Mill”) is a leading asset-based lending commercial finance company that specializes in making senior secured asset-backed loans to small and medium-sized companies 

  • NMC was founded in 2010 by its senior management team who originally launched the strategy in 1995 and have worked together for more than 20 years across multiple organizations

  • Based in Princeton, NJ and currently has ~30 employees with BDO offices in Minneapolis, MN, Milwaukee, WI, Atlanta, GA, Chicago, IL, Newtown, CT and Needham, MA

  • Diversified portfolio with over 90 portfolio companies

  • 100% collateralized investment portfolio

Borrower Profile Characteristics

  • Privately-owned, small to medium-sized businesses who have limited access to bank financing

  • Primarily US-based companies operating in the manufacturing, services and distribution industries

  • Borrowers typically have limited access to bank financing

  • NMC is typically the agent and sole lender to its borrowers

Typical Transaction Profile

  • Size ranges from $500,000 to $10,000,000

  • Loan tenor is 1-to-3 years; average life of ~2.5 years

  • Financing structures primarily include asset-based loans (revolving) and factoring agreements (revolving)

  • Loans are collateralized on a first lien basis in all cases primarily by accounts receivable

Financial & Portfolio Snapshot

As of June 30, 2018
Structure: Portfolio Company
(Pass-thru Entity)
Portfolio Size: ~$163 million
Number of Issuers: ~91
Average Position Size:  $1.8 million
% of Investments Secured: 100%
% of Investments Floating Rate Coupon: 81%
Weighted Average Asset-level Yield: ~13.3%