Texas Capital Announces Private Credit Strategy

Rhea-AI Summary

Texas Capital Bancshares, Inc. (NASDAQ: TCBI) has announced the launch of its Texas Capital Direct Lending (TCDL) platform, aimed at providing non-bank private capital to the middle market. The platform will focus on senior secured floating rate term loans for Texas-based middle market companies and private equity sponsors. Tim Laczkowski has been appointed as Managing Director to lead this new initiative.

TCDL will target companies with $5-50 million in EBITDA, primarily focusing on those between $10-30 million. This move expands Texas Capital's suite of financial and advisory solutions, positioning it as the 'first call' for middle market companies in Texas and beyond. The platform will leverage Texas Capital's industry expertise, product breadth, and existing banking capabilities to offer a comprehensive financing solution.

Positive

• Launch of Texas Capital Direct Lending platform expands service offerings
• Appointment of experienced leader Tim Laczkowski as Managing Director
• Targeting a specific market niche of middle-market companies with $5-50 million EBITDA
• Leveraging existing Corporate and Commercial Banking coverage teams
• Potential for increased revenue streams through new lending activities

Negative

• Entering a competitive private credit market with established players
• Potential increase in risk exposure through direct lending activities
• Success dependent on the performance of the new platform and market conditions

Tim Laczkowski Appointed to Lead Texas Capital’s Inaugural Direct Lending Fund

DALLAS, Aug. 05, 2024 (GLOBE NEWSWIRE) -- Texas Capital Bancshares, Inc. (NASDAQ: TCBI), the parent company of Texas Capital, today announced the launch of its Texas Capital Direct Lending (“TCDL”) platform. Focused on providing non-bank private capital to the middle market, TCDL will form an integral part of Texas Capital’s Corporate & Investment Bank and will enable Texas Capital clients and prospects to access a wider array of capital solutions. Texas Capital expects TCDL to focus on senior secured floating rate term loans targeting Texas-based middle market companies and private equity sponsors.

Concurrently with today’s announcement, Texas Capital announced that Tim Laczkowski has joined Texas Capital as a Managing Director. Laczkowski will be responsible for leading the firm’s new Direct Lending business, including fund management, underwriting, investment and portfolio management for TCDL. As the premier full-service financial services firm headquartered in Texas, the launch of TCDL further extends Texas Capital’s suite of financial and advisory solutions and solidifies the firm’s position as the “first call” for middle market companies headquartered in Texas and beyond.

“The launch of the Direct Lending platform is a significant milestone for Texas Capital, as we will be able to provide clients with direct access to private credit funding while leveraging our industry expertise; breadth of product and services; and leading treasury, payments and investment banking capabilities,” said Texas Capital’s Head of Corporate & Investment Banking Daniel Hoverman. “We fundamentally believe that business owners should have access to Texas-based financing options. We trust that the TCDL platform will provide a welcome resource for ambitious, growth-oriented companies in the middle market. Under Tim’s leadership, complemented by our robust private wealth, sponsors coverage and capital markets businesses, we are confident that Texas Capital can deliver our clients financing options to address an array of strategic challenges.”

Based in Dallas, Laczkowski brings more than 20 years of debt and equity investing experience to Texas Capital. Previously, he served as founder and partner of Altacrest Capital, a Dallas-based private equity firm.

Texas Capital Direct Lending, in combination with the broader Texas Capital platform, will seek to provide a seamless source of capital for its borrowers. TCDL intends to lend to middle market companies generating between $5 million and $50 million in EBITDA, with a primary focus on companies between $10 million and $30 million in EBITDA. The strategy will benefit from Texas Capital’s Corporate and Commercial Banking coverage teams, who are already dedicated to serving clients and prospects across Texas.

“Adding a private capital funding option for middle market companies extends our reach as a full-service financial institution,” said Laczkowski. “It is an honor to join Texas Capital to build out our Direct Lending platform and capabilities and to further differentiate ourselves in the market.”

ABOUT TEXAS CAPITAL
Texas Capital Bancshares, Inc. (NASDAQ®: TCBI), a member of the Russell 2000® Index and the S&P MidCap 400®, is the parent company of Texas Capital Bank d/b/a Texas Capital, and a full-service financial services firm that delivers customized solutions to businesses, entrepreneurs, and individual customers. Founded in 1998, the institution is headquartered in Dallas with offices in Austin, Houston, San Antonio and Fort Worth and has built a network of clients across the country. With the ability to service clients through their entire lifecycles, Texas Capital has established commercial banking, consumer banking, investment banking and wealth management capabilities. All services are subject to applicable laws, regulations, and service terms. Member FDIC. For more information, please visit www.texascapital.com.

FAQ

What is Texas Capital's new Direct Lending platform (TCDL)?

Texas Capital Direct Lending (TCDL) is a new platform launched by Texas Capital Bancshares, Inc. (NASDAQ: TCBI) to provide non-bank private capital to middle market companies, focusing on senior secured floating rate term loans for Texas-based businesses and private equity sponsors.

Who will lead Texas Capital's Direct Lending business?

Tim Laczkowski has been appointed as Managing Director to lead Texas Capital's new Direct Lending business, including fund management, underwriting, investment, and portfolio management for TCDL.

What is the target market for Texas Capital Direct Lending (TCBI)?

TCDL intends to lend to middle market companies generating between $5 million and $50 million in EBITDA, with a primary focus on companies between $10 million and $30 million in EBITDA, primarily based in Texas.

How does the Direct Lending platform fit into Texas Capital's (TCBI) overall strategy?

The Direct Lending platform extends Texas Capital's suite of financial and advisory solutions, positioning it as a full-service financial institution and the 'first call' for middle market companies in Texas and beyond, leveraging its existing banking capabilities and industry expertise.