Five Crowns Credit Partners was established in 2016 to formally expand the capabilities of Five Crowns Capital into lower middle-market direct lending. We work with borrowers to creatively solve their funding needs with our highly flexible and customized approach.
The firm’s broad investor base and opportunistic investment style results in maximum lending flexibility such that we can creatively and holistically solve borrowers’ liquidity needs with highly customized loan structures, terms, and covenants in stark contrast to the rigid approach utilized by most traditional lending sources
Many of our borrowers initially assume that equity capital is the only option available to them, but our flexible approach to lending often allows us to solve their liquidity needs with significantly less dilution to existing shareholders and typically more beneficial tax treatment which results in a materially lower all-in cost of capital
Our broad network of co-investors (family offices, wealthy individuals, and institutions) allows us to fund deals well beyond our committed base of capital while offering a wider range of operational resources and capital solutions; most importantly to borrowers, this enables our funding amounts to grow with business needs over time
We strive to build strong, collaborative relationships with our borrowers over the long-term – therefore the same Five Crowns professional will lead a given deal from the initial call through the entire holding period of our investment; we find that this continuity helps to foster effective communication with management
The firm has invested in a wide array of industries since its 2003 founding – this has resulted in a broad base of in-house industry experience and a deep bench of operational resources that can parachute in as needed to ramp up quickly on due diligence, discretely assess complex situations, and provide timely feedback
Our in-house operational expertise and network of industry experts are readily available to our borrowers to assist with board-level governance and to provide management guidance as needed – we strive to work closely with all of our borrowers to identify opportunities and drive performance improvements