#United States #Pasadena #SLR Capital Partners #Pasadena Private Lending #East West Bank

Pasadena Private Lending Secures $50 Million for Growth

Pasadena Private Lending Inc. (PPL), a key player in the non-bank lending space within Pasadena, California, has successfully finalized a significant financing round. On March 31, 2025, the company announced the closure of a $50 million secured term loan with SLR Capital Partners, LLC, alongside an expanded senior credit facility with East West Bank, positioning itself for further growth in the competitive business lending market.

A Strategic Partnership for Growth

PPL, an affiliate of Pasadena Private Financial Group, has carved a niche in providing Owner-Guaranteed Business Loans ranging from $2 million to $10 million for companies in the lower middle market. The secured loan from SLR Capital Partners brings fresh capital into PPL's operations, thereby enhancing its capacity to serve a growing clientele. SLR, recognized for its focus on U.S.-based middle market businesses, has strengthened PPL’s financial foundation with this investment.

The concurrent amendment and extension of PPL’s existing senior credit facility with East West Bank allow for an increase in the advance rate from 65% to 70%, alongside extending the facility's maturity until July 2028. This adjustment signifies East West Bank’s ongoing commitment to support PPL and reflects a robust banking partnership that has been in place since 2021.

Addressing Market Trends

In an environment marked by economic fluctuations and decreased interest rates, there’s a burgeoning demand from lower-middle market companies seeking accessible credit solutions. PPL's strategic positioning as a responsive non-bank lender enables it to cater to this key market segment effectively, which presents ample opportunities for growth.

"We are thrilled to secure this funding at a time when private credit continues to gain traction, outpacing traditional banking channels as a primary driver of economic growth," commented Michael McAdams, CEO of PPL. McAdams expressed gratitude towards SLR and East West Bank for their confidence in PPL's potential for prudent expansion.

According to Iain Whyte, Chairman of PPL, welcoming SLR into their capital structure reinforces PPL’s strategic goals and underscores the importance of collaborative partnerships in the finance sector.

East West Bank’s Support

East West Bank continues to play a pivotal role in PPL’s financial strategy. Andrew Stein, Executive Vice President and Head of Commercial Banking and Specialty Finance at East West Bank, emphasized their growing expertise in the specialty finance area, which has resulted in significant portfolio growth. By leveraging its resources and experience, East West Bank can provide substantial support to emerging lenders like PPL, further solidifying the latter’s market position.

Future Outlook

In light of the recent financial developments, bolstered by the valuable insights from both SLR and East West Bank, PPL is poised to expand its lending capabilities. This will allow the company to focus on businesses seeking to diversify their overextended net worth, finance acquisitions, or simply bolster their growth initiatives. The surge in demand for floating-rate credit is an exciting opportunity that PPL is ready to capitalize on.

As PPL continues to strengthen its lending portfolio, the firm remains committed to identifying quality business opportunities in the lower middle market. The company’s strategic capitalization and partnerships with trusted financial institutions underscore its mission to facilitate business growth and support entrepreneurial ventures.

In conclusion, Pasadena Private Lending’s recent $50 million institutional financing is a watershed moment that not only enhances its lending capacity but also illustrates an increasing trend within the private credit landscape. With robust partnerships and a clear vision for the future, PPL stands ready to lead the charge in business lending, paving the way for sustained economic growth within its operational realm.