#USA #Dallas #Texas Capital #Phoenix Merchant #Spurstone Credit

New Strategic Partnership to Empower Middle Market Financing

In an exciting development for the financial landscape, Phoenix Merchant Partners, LP has announced a strategic alliance with Texas Capital Alternative Asset Management (TCAAM). This collaboration aims to deliver specialized capital solutions and direct lending to the core middle market, particularly for businesses that often find themselves underserved in private credit markets.

This partnership marks a significant milestone as it merges the extensive corporate and investment banking network of Texas Capital with the advanced structuring and disciplined underwriting approaches championed by Phoenix. By integrating these strengths, the two firms are poised to address a critical need within the marketplace, particularly for mid-market enterprises with annual revenues ranging from $100 million to $1 billion.

Launch of Spurstone Credit

The first initiative under this alliance is the upcoming launch of Spurstone Credit, which is set to debut in the third quarter of 2026. This innovative fund is structured as a perpetual-life, non-traded closed-end credit vehicle and will be headquartered in Dallas, Texas. Early indications suggest strong interest from a range of institutional anchor investors, highlighting the market's positive reception and the demand for high-quality private credit solutions.

Art Mbanefo, the Founder and CEO of Phoenix, underscores the importance of proprietary origination in the private credit landscape. He notes that collaborating with TCAAM provides unparalleled access to a network of founder-owned businesses not only across Texas but in major economic centers such as California, New York, and Illinois. This synergy aims to bridge the liquidity gap that many exceptional middle-market companies face, catering especially to family-owned and founder-led businesses requiring flexible, non-dilutive senior capital for initiatives like organic growth or strategic acquisitions.

Meeting a Market Need

The strategic relationship between Phoenix and Texas Capital is designed to meet a vital liquidity demand in a market where traditional financing options often fall short. Daniel Hoverman, Head of Corporate Investment Banking at Texas Capital, stated, “As the only full-service financial services firm headquartered in Texas, we are continuously seeking ways to enhance our offerings for companies and their owners, both locally and in targeted industries nationwide.” He emphasized that the collaboration allows them to significantly enhance their ability to provide bespoke financing solutions tailored to the needs of their clients.

The Future of Financing

With a dedicated focus on ensuring capital preservation and effective portfolio management, the partnership reflects a commitment to delivering outstanding client service and comprehensive solutions. Phoenix’s disciplined approach to asset structuring aligns seamlessly with Texas Capital’s extensive industry expertise, setting the stage for a successful venture into one of the most challenging sectors of the financial market.

As this partnership progresses, both companies remain optimistic about the impact they can have on the middle market financing landscape while providing essential capital solutions that empower growth and stability for mid-market enterprises. The establishment of Spurstone Credit not only fortifies their market position but also reaffirms their commitment to fostering long-term relationships and sustainable economic development within their client base.

In conclusion, as the financial sector continues to evolve, partnerships like the one between Phoenix and Texas Capital stand out as proactive measures to address the distinct challenges faced by mid-market companies. The future looks promising for Spurstone Credit and the countless businesses it aims to support on their financial journeys.