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Sponsor finance solutions designed to get deals done

Innovative digital platform and team of experts specializing in the lower middle market and dedicated to helping you achieve your growth objectives.

Forward-thinking solutionsDriving growth through creative & flexible financing solutions

  • Senior Secured Term Loans

    To support leveraged buyouts and subsequent add-on acquisitions

  • Senior Secured Revolving Lines of Credit

    To support working capital needs and general corporate purposes

  • Delayed Draw Term Loans

    To finance acquisitions, growth capital or deferred purchase price payments

  • Fund Capital Call Lines

    To bridge investments or other temporary funding purposes

  • Fund NAV Facilities

    To provide flexibility and improve returns backed by your fund's investment portfolio

Why partner with us?

  • Relationship Lender

    Our strategy has and will continue to be centered around forming entrenched relationships with our investment partners. We approach each opportunity with deep, thoughtful engagement, a client-first mentality, and long-term relationship perspective.

  • Exceptional Deal Execution

    When partnering with us, you get to work with a dedicated team of experts who are proficient in underwriting and deal execution due to years of intentional experiential learning. Our origination and credit teams work hand-in-hand through every stage of a transaction, ensuring timely communication amongst all parties and successful expedited approvals when needed.

  • Innovative Digital Platform

    In addition to our knowledge and expertise, we leverage our innovative digital banking platform to optimize and achieve operational efficiency across all elements of a transaction. By engaging with us, companies not only benefit from the experience of our team, but also the best of banking technology.

Meet Your SpecialistsTalk with a team member

Our target criteria Focus on lower middle market companies

At Grasshopper we take pride in working with sponsors throughout the U.S. who have diverse backgrounds while leveraging our extensive network of investment partners should a deal exceed what the bank is able to provide directly.

  • Loan Size

    Capital needs starting at $1 million

  • Annual Revenue

    Sustainable minimum annual revenue of approximately $8 million

  • EBITDA Size

    EBITDA size starting at approximately $1 million

Frequently Asked Questions

  • Our sponsor finance strategy is not bound by any formal mandate restricting the types of institutions that the team can engage with. We work with funded and unfunded private equity firms, family offices, independent sponsors, and subordinate debt lenders, executing on direct strategies. Regardless of who our investment partner is, we value a proven track record of deal execution in the lower-middle market, relevant sector expertise, workout experience, and the ability to source capital post-close in support of a borrower’s growth or liquidity as needed.

  • When considering companies to invest in, our team generally looks for companies that are generating at least approximately $8 million in revenue and approximately $1 million in earnings before interest, taxes, depreciation, and amortization (EBITDA) on a sustainable basis. We typically prioritize credit criteria such as an established history of profitability, a business model with inherently high free cash flow generation, and diversity of earnings amongst customers, product categories, and end markets.

    Equally important, there are no specific requirements that govern our strike zone (e.g., maximum customer concentration percentage, exposure to cyclical end markets, etc.). We look at each company with a fresh perspective and work collaboratively with you to gain a comprehensive understanding of the potential risks the company may face in the future and why you believe there are sufficient mitigating factors for each.

  • We target a minimum funded debt amount of  approximately $2 million at the initial closing of each transaction and currently have a maximum commitment (i.e., funded plus unfunded) amount of approximately $10 million per borrower. On the other hand, we have established relationships with an extensive network of like-minded investment partners who we often engage to come into a deal should the requested debt facility exceed what Grasshopper is able to provide directly.

  • From receipt of initial materials to closing, a typical deal is completed within 6 weeks. However, under special circumstances, our deal professionals can execute transactions in less than 3–4 weeks. We work with legal counsel that has extensive experience in lower middle market deal execution and a proven track record of efficiency across all legal processes involved with a transaction.

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