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Close Credit Management
Close Credit Management originates non-sponsored direct loans to lower-middle-market companies, targeting complexity premiums in private credit.
Close Credit Management
Close Credit Management originates and underwrites direct loans to lower-middle-market companies across North America. The firm targets borrowers generating $10 million to $100 million in revenue, a segment where bank retrenchment has left a durable financing gap. Its deal flow is primarily non-sponsored, sourced through regional banking relationships, insolvency practitioners, and industry networks rather than broad auction processes. This approach aims to capture complexity premiums and illiquidity premia that are often competed away in larger, intermediated markets. The strategy spans senior secured first-lien loans, stretch senior, and mezzanine debt, with occasional opportunistic special situations. Structures emphasize hard asset coverage, borrowing-base formulas, and financial maintenance covenants — tools that have fallen out of favor in covenant-lite leveraged loan markets. Portfolio companies typically operate in manufacturing, business services, distribution, and niche industrial sectors. The firm's credit committee maintains approval authority on all exposures, sizing positions based on asset coverage and enterprise value multiples rather than sponsor reputation or market momentum. The firm is led by its founding partners, whose backgrounds combine institutional credit training at major banks and asset managers with decades of hands-on restructuring experience. The partnership structure and absence of external LP pressure allow for drawdown-style or deal-by-deal capital deployment, avoiding the forced-deployment dynamics that can erode underwriting discipline in perpetual capital vehicles. This governance model aligns manager incentives with credit outcomes rather than fee growth. What distinguishes Close Credit Management is its sole focus on non-sponsored origination in a market where most direct lenders have migrated toward sponsor-backed deals. The firm's sourcing network — built on long-tenured regional relationships rather than centralized deal-sourcing teams — represents a genuine competitive moat that is difficult for larger platforms to replicate without sacrificing cost efficiency.
General information
Firm type
Asset Manager
Year founded
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AUM
Undisclosed
Location
Region
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Country
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City
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Corporate office
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Sector focus
Frequently asked questions
What is Close Credit Management's lending focus?
Close Credit Management focuses on direct lending to lower-middle-market companies in North America, typically with revenues between $10 million and $100 million. The firm is primarily non-sponsored, meaning it lends directly to companies rather than to private equity portfolio companies. Its loans are generally senior secured, covenant-heavy, and asset-backed, targeting a yield premium over broadly syndicated credit.
How does Close Credit Management source its deals?
The firm sources deals through a decentralized network of regional banking relationships, turnaround professionals, attorneys, and industry contacts. This non-sponsored, relationship-driven approach avoids the auction processes common in sponsor-backed lending. The result is a pipeline of complex, often overlooked credit opportunities where the firm can negotiate stronger creditor protections.
What differentiates Close Credit Management from other private credit managers?
The primary differentiator is its non-sponsored focus. Most direct lenders in the lower-middle market have shifted toward private-equity-backed borrowers, which offer faster deal flow and scale. Close Credit Management remains dedicated to owner-operated and family-owned businesses, where bank retrenchment has left a structural financing gap and where loans can be structured with tighter covenants and higher spreads.
What types of debt instruments does Close Credit Management use?
The firm deploys capital through senior secured first-lien loans, stretch senior loans, mezzanine debt, and occasional opportunistic special situations. Structures are tailored to each borrower's asset base and cash flow profile, with an emphasis on borrowing-base formulas, hard asset coverage, and maintenance covenants rather than covenant-lite terms.
How is Close Credit Management structured?
Close Credit Management is an independent, partner-led asset manager. The partnership structure aligns investment team incentives with credit performance rather than AUM growth. The firm raises capital on a deal-by-deal or drawdown basis, avoiding the forced-deployment pressure of perpetual capital vehicles. Governance is concentrated in a credit committee led by the founding partners, whose backgrounds span institutional credit underwriting and corporate restructuring.
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