With backing from Bain Capital, Plano lending firm aims to fill growing gap for middle-market companies

A new asset-based lending company based in Plano aims to fill what it sees as a growing gap in the middle market.

Legacy Corporate Lending will provide revolving credit facilities and term loans ranging in size from $10 million to $40 million to companies in an array of industries that seek to access capital outside of traditional bank lending or the syndicated lending market. The credit arm of Boston-based investment giant Bain Capital is backing the firm with a "significant" equity investment.

A spokesman for Legacy declined to disclose the dollar amount of Bain's investment but said it will be "enough commitment...to get through five years of projected growth."

Legacy intends to make loans that are secured by assets including accounts receivable, inventory, machinery and equipment, real estate, and intellectual property. The firm, led by CEO Clark Griffith, sees an opportunity to fill a "significant gap" for the middle market as many asset-based lenders have gone upmarket and regional banks across the U.S. pull back on lending to due to pressure on deposits.

“We are excited to establish this well-capitalized platform in partnership with Bain Capital Credit at a time when lending provides an essential solution to many companies,” Griffith said in a prepared statement. “We see a significant opportunity to leverage our combined credit investment and industry expertise to provide borrowers with flexible, solutions-oriented capital.

Griffith, a 25-year commercial finance industry veteran has experience leading and establishing asset-based lending businesses. He spent almost 15 years at GE Capital, including roles as officer of GE Japan and senior managing director and head of the company's structured finance business. He has also worked for ABL Capital Partners, White Oak Global Advisors and Encina Business Credit. Most recently, Griffith worked two years as principal of Triple B Ranch of Gilmer, a working cattle ranch focused on Japanese-grade Wagyu cattle.

Paul Martin will serve as Legacy's chief investment officer. He brings more than 30 years of commercial lending experience, including having worked for ABL Capital Partners and co-founding several asset-based lending companies.

Lawrence Ridgway will be chief operating officer. He joins Legacy from Citizens Commercial Banking where he served as a senior vice president covering asset-based lending clients.

“We are fortunate to be partnering with such a talented and experienced leadership team who shares our conviction about the need for quality ABL offerings to serve this market, and the growth opportunities that lie ahead," Thomas Kolinski, a partner at Bain Capital Credit, said in a statement. "As seasoned industry veterans, Legacy’s executive team is uniquely positioned to address the complex needs of middle market borrowers and to do so with the speed certainty, and execution that today’s fast paced market demands."