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FOR IMMEDIATE RELEASE
New Leveraged Lender Formed in Chicago
Veteran Chicago financial execs, Marquette Financial team to target firms in lower middle market
CHICAGO - (Mar. 21, 2005) - Three veteran Chicago lenders have teamed with Minneapolis-based Marquette Financial Companies to launch MFC Capital Funding, Inc., a leveraged lending firm based in Chicago.
MFC Capital Funding will provide a full range of leveraged finance products to the lower segment of the middle market all delivered through a single point of distribution. Senior secured products will include cash flow multiple, structured finance and asset-based loans. The firm or affiliates will also offer complementary mezzanine financing as well as select equity co-investments and private equity fund investments.
MFC Capital Funding is headed by two Chicago-based, leveraged finance veterans: Joseph P. Gaffigan and Christopher S. Randall, both former senior executives with Fifth Third Bank in Chicago. Gaffigan, who will serve as president and chief executive officer, was senior vice president/group manager of Fifth Third Bank's Specialty Finance Groups. Randall, previously a division manager of the Structured Finance Group of Fifth Third, will serve as senior managing director and chief operating officer. Additionally, Edward J. Ryczek, previously director of One Mezzanine Capital Corporation, will be a managing director of MFC Capital Funding.
MFC Capital Funding will provide loans to lower middle market companies with credit requirements ranging from $3 million to $25 million. MFC Capital Funding's credit facilities would typically be used in private equity sponsor led transactions, as well as directly by companies seeking alternatives to traditional bank lending. Leveraged finance lending, which relies on a company's cash flow and/or collateral, is used to fund growth situations, restructurings, recapitalizations and mergers and acquisitions.
"We believe the lower middle market sector has been greatly underserved," Gaffigan said. "Chris, Ed and I have spent our entire careers successfully serving clients in the lower middle market sector. It is what we know and where we want to stay."
"By partnering with Marquette Financial Companies we are able to operate as owners, and we are empowered to make lending decisions which is a unique approach for this market," Gaffigan added. "Because we will represent a single funding source for a wide range of leveraged lending options we can provide a complete financing package that will be in the best interests of our clients."
Given the team's national experience, MFC Capital Funding plans to work broadly across the U.S.
"This company expands our presence in leveraged finance," said Bert Colianni, executive vice president and chief operating officer of Marquette Financial Companies. "This move is in line with our strategic plan to expand our reach in the commercial finance area."
The Chicago-based investment banking firm of Triton Capital Partners advised Gaffigan and Randall in the formation of MFC Capital Funding and will be members of the firm's advisory board.
MFC Capital Funding is located at 30 South Wacker Drive, Suite 2284, Chicago, IL 60606 and can be reached at (312) 466-5703.
Joe Gaffigan, Chief Executive Officer
Chris Randall, Chief Operating Officer
Ed Ryczek, Managing Director
About Marquette Financial Companies:
MFC Capital Funding, Inc. is part of Marquette Financial Companies, a $1.2 billion diversified financial services holding company comprised of specialty financial service businesses. Marquette Financial Companies is part of the Carl Pohlad family's diverse business holdings, which also include significant interest in the beverage industry, real estate, and ownership in Major League Baseball's Minnesota Twins.
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