BOSTON, MA, October 17, 2011 - Velocity Financial Group ("Velocity") announced today that it has agreed to join forces with NXT Capital ("NXT"), a rapidly growing and well capitalized middle-market commercial finance company, to launch NXT Capital Venture Finance. Jan Haas, President and CEO of Velocity, will join NXT's senior management team as head of the new business. Velocity's team of investment professionals, consisting of JP Marchette, Peter Fair, Tony Huang and Joe Spinelli, will form the core of the Venture Finance group, with immediate plans to hire additional individuals to round out the team.
NXT Capital Venture Finance complements NXT Capital's Corporate Finance and Real Estate Finance groups, extending NXT's reach to emerging growth companies backed by venture capital and private equity firms, particularly those in the technology and life science sectors. NXT Capital Venture Finance provides senior and subordinated term loans in the $1 to $20 million range to these companies.
"The venture debt market is becoming more institutionalized; serving it properly requires a significant balance sheet," said Haas. "Combining the Velocity team with the NXT platform gives the new Venture Finance team the capacity and capabilities to consistently deliver to our clients an attractive alternative to traditional bank financing – even as markets cycle – and a far less dilutive source of capital at a time when capital efficiency is paramount."
"We're excited to be joined by Jan and his colleagues in launching NXT Capital Venture Finance, and are confident that the team's extensive domain expertise, impressive track record, consistent commitment to the entrepreneurial community and past experience building de novo businesses will be vital ingredients in the success of this initiative," said Robert Radway, Chairman and CEO of NXT Capital. "Venture finance is a business we are very familiar with and one that represents a logical, attractive expansion of the NXT platform."
NXT Capital Venture Finance is a newly formed business committed to serving entrepreneurs by providing less dilutive, more flexible forms of capital. With offices in Boston and Silicon Valley, NXT Capital Venture Finance provides senior and subordinated term loans in the $1 to $20 million range to emerging growth companies backed by venture capital and private equity firms, particularly those in the technology and life science sectors. Target clients range from pre-revenue companies led by dedicated entrepreneurs to late-stage, proven businesses seeking more efficient growth capital. For more information, see www.nxtcapital.com/venture-finance.
NXT Capital provides structured financing solutions to middle-market and emerging growth companies, and real estate investors through its Corporate Finance, Real Estate Finance and Venture Finance groups. Based in Chicago with offices in New York, Atlanta, Boston, Dallas, Newport Beach and Silicon Valley, NXT Capital targets senior financing opportunities of up to $150 million with a typical hold size up to $30 million. See www.nxtcapital.com for more information.
Contact information:
Carole Shifman
847.433.4210
carole@c-scomms.com