NEW YORK, Oct. 03, 2017 (GLOBE NEWSWIRE) -- Enhanced Credit Supported Loan Fund, a part of the Enhanced Capital family of funds, announced today it will change its name to Hark Capital. The company also announced the final close of its second fund with $203 million of commitments.
Hark Capital will continue its innovative approach of supporting financial sponsors including private equity funds, distressed PE, and growth equity / VC firms. Employing its branded Arch Note, Hark Capital provides non-dilutive loans to the portfolio companies of financial sponsors in situations that would typically require equity. The loans are based on the fund’s NAV, not the credit profile of the individual portfolio company.
The Arch Note offers flexible credit structures that can support sponsor companies in innovative ways:
- Using debt rather than equity to finance growth
- Utilizing holding company debt to reduce operating company leverage or to make tuck-ins
- Providing working capital for portfolio companies with negative EBITDA
- Financing equity needs past the fund’s investment period
- Repaying capital call line debt at the end of the fund’s investment period
Hark Capital will continue to be managed by the same team since it was launched in 2013, led by Doug Cruikshank, CEO, and Senior Principals Rafael Castro and Rich Davis.
“The launch of Hark Capital is a natural extension of our current, differentiated strategy of supporting financial sponsors and their portfolio companies. We are excited to build on the same, successful approach of solving equity transition needs with a lower cost and more flexible solution,” Cruikshank said. “Hark Capital is extremely grateful for the support and confidence of our initial and new investors and we are excited to have a new pool of capital to deploy as we continue growing market awareness of our innovative financing approach.”
In conjunction with the rebranding, Hark Capital successfully closed the $203 million fund Hark Capital II, LP (“Fund II”), exceeding its target fund size, without a placement agent. Investors in Fund II represent pension, insurance company, non-profit foundation and family office assets. Fund II is now closed and is not accepting any additional subscriptions. Fund II also closed on a committed revolving credit facility from Capital One.
Fund II comes approximately three years since the final closing of Hark Capital I, LP (“Fund I”), the rebranded Enhanced Credit Supported Loan Fund I, LP. Since launching in 2013, Fund I invested over $200 million and made over 30 investments.
To learn more about Hark Capital and view a 2-minute video on how sponsors use the Arch Note, please visit our new website www.harkcap.com.
About Hark Capital
Based in New York, NY, Hark Capital is an innovative provider of financial solutions for sponsors and their portfolio companies. Hark Capital provides non-dilutive loans to the portfolio companies of sponsors in situations that would typically require equity. The loans are based on the sponsor’s NAV, not the credit profile of the individual portfolio company. For more information, please visit www.harkcap.com.
About Enhanced Capital
Headquartered in New York, NY, Enhanced Capital is a diversified private investment firm dedicated to providing capital solutions for small and mid-sized companies often overlooked by traditional sources of debt or equity financing. Enhanced Capital has invested over $1 billion in businesses, organizations and projects through partnerships with public and private entities. For more information, visit www.enhancedcapital.com.
Contact: Doug Cruikshank, CEO
doug@harkcap.com
(212) 207-3385