Ex-Goldman, AB duo launches private credit services firm
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Two Wall Street pros have launched a new firm focused on supporting small to mid-sized private equity firms on private credit transactions.
Why it matters: The launch comes as private credit lending has soared over the last few years and became the favored financing option for buyout firms.
Zoom in: The new firm, Lane Four Capital Partners, was founded by Rob Chuchla and Robert Buckwalter. Chuchla previously worked in Goldman Sachs' private credit group. Buckwalter came from Alliance Bernstein Private Credit Investors.
- "There's a lot of private equity sponsors that are in between certain size ranges that don't have in-house capital markets expertise. And we think that there's an opportunity to help those folks get better execution," Buckwalter says.
Between the lines: Lane Four is a debt capital markets advisory firm. It aims to contract with private equity firms under long-term agreements whereby it covers all of a sponsor's debt financing needs through the entire debt lifecycle, from initial financing, amendments, upsides, refinancing and more.
- "If you're a credit advisor, you get paid more if your clients are responsible for more debt. That can quickly misalign incentives," Chuchla says.
The big picture: Private credit kept the the steady trickle of M&A going over the last few years while banks remained on the sidelines. Those banks have come back to the market, competing head to head with direct lenders on some deals.
The bottom line: "You've got longer term, more flexible and patient capital in the private credit market," Buckwalter says.
