In a strategic move with far-reaching implications, Sterling Commercial Credit, LLC, has entered a new chapter by selling a majority equity stake to Great Elm Capital Corp. (GECC). This partnership, which was finalized in February 2022, not only signifies a significant milestone for both Sterling and GECC but also highlights the strength of collaboration in the financial sector.
Asset Based Lending is a specialized form of financing that allows businesses to secure loans or credit lines by pledging their tangible and valuable assets as collateral. These assets can include accounts receivable, inventory, equipment, real estate, and sometimes even intellectual property. ABL stands in contrast to traditional lending, which primarily relies on a company's creditworthiness and financial history.
The acquisition opens new horizons for GECC, particularly in the realm of Asset-Based Lending (ABL) Revolvers and comprehensive financing solutions. According to Michael P. Keller, President of Great Elm Specialty Finance, "This transaction is pivotal for GECC as the Sterling platform allows us the ability to offer ABL Revolvers and one-stop shop financing options for our clients." The addition of Sterling to the Great Elm family is expected to significantly expand the specialty finance footprint while ushering in a multitude of new opportunities.
Edwin Small, representing Sterling Commercial Credit, expressed enthusiasm about joining forces with GECC and the potential it holds. "We are excited to join GECC and believe that this transaction will allow Sterling the ability to offer additional lending products to middle market businesses," noted Mr. Small. With GECC's robust access to capital, Sterling is well-positioned to execute on larger transactions, further fueling its growth and reach.
Established in 2004, Sterling Commercial Credit has earned a reputation as a leading provider of asset-based lending solutions catering to middle-market companies across diverse industries.
Great Elm Capital Corp. operates as an externally managed business development company, with a primary goal of generating current income and capital appreciation through strategic investments in debt and income-generating equity securities. This includes a keen focus on investments in specialty finance businesses.
This acquisition represents not just a transaction but a strategic synergy that promises to reshape the landscape of specialty finance, offering a broader range of solutions and opportunities to businesses in the middle market. As Sterling Commercial Credit joins forces with Great Elm Capital Corp., the future holds promise for enhanced financial solutions and expanded horizons.