Lafayette Square USA, Inc. Achieves $65 Million Investment via Private Placement

Lafayette Square USA, Inc. Achieves $65 Million Through Private Placement

Lafayette Square USA, Inc., a significant player in the private credit market, recently announced a considerable achievement in financial mobilization. On August 21, 2025, the firm disclosed that it secured $65 million through a private placement of investment-grade Senior Notes, targeting qualified institutional investors. This strategic move operates under a Note Purchase Agreement that outlines essential terms and conditions regarding this financing.

The Senior Notes, issued by Lafayette Square, are classified as unsecured with a fixed interest rate of 7.00% per annum. They are scheduled to mature on August 19, 2030, unless the company opts to redeem, purchase, or prepay them before this date. The offering comes on the heels of recognition from Morningstar DBRS, which assigned Lafayette Square a Long-Term Issuer Rating of BBB (low) and a Stable Trend, based on the company's impressive operational performance, which includes improved profitability and dividend coverage. This rating is a reflection of their robust performance metrics and adherence to a conservative leverage profile.

In detailing the context for this financing, Damien Dwin, the Founder and CEO of Lafayette Square, highlighted the growing trend among institutional investors: "This successful private placement fits a pattern of institutional investor interest in working-class people and places." By securing this capital, Lafayette Square will not only diversify its financial avenues but will also bolster the support it provides to working-class communities through its investments. This focus aligns with the firm's mission to invest significantly in middle-market companies located in working-class areas across the country.

Goldman Sachs took the lead as the placement agent for this transaction, aided by Raymond James and Keefe, Bruyette & Woods, A Stifel Company, as co-placement agents. Their involvement underscores the significant interest in innovative financing solutions that target community uplift and economic empowerment.

Following this announcement, Lafayette Square had also recently reported its second-quarter earnings through its Form 10-Q and Form 8-K filings. This report includes a summary of the company's financial performance and operational insights for the fiscal quarter ending June 30, 2025. Such transparency reaffirms Lafayette Square's commitment to its stakeholders and the broader business community.

About Lafayette Square

Lafayette Square operates as a private credit firm with a mission to lend capital specifically to growing middle-market companies in underserved, working-class areas. Their unique approach is distinguished by four core differentiators. Firstly, the absence of sponsored deals allows for a more direct investment strategy. Secondly, the firm enhances managerial assistance through its Worker Solutions® platform. Thirdly, their technology-first strategy employs a data-driven investment approach through their Potomac X Lafayette Square™ model. Lastly, established institutional partnerships reinforce their financial foundation and operational capabilities.

Lafayette Square’s investment thesis posits that working-class demographics and geographic regions are often overlooked by traditional private credit, presenting a unique opportunity for investments characterized by conservative underwriting, managerial support, and tech integration.

The firm's ambitious goals are set high for the coming years: they aim to support the creation of 100,000 working-class jobs, allocate 50% of capital into working-class locations, and ensure that 50% of their portfolio captures tangible benefits for these communities by the year 2030. As Lafayette Square continues to expand its influence and impact, it serves as a model for integrating financial performance with social responsibility.

For those looking to learn more about Lafayette Square's functions and strategic vision, further details can be accessed at their official website: www.lafayettesquare.com.