Franklin Capital Group Has Been Acquired
This month, Franklin Capital Group was acquired by Wing Lake Capital Partners with the help of Rocky Mountain Bank. Franklin Capital will change its name and add funding capability- but the entire team will stay on. CEO Shaya Baum was happy to announce the deal, explaining that the firm would use acquisition funds to create more deals and continue to grow.
“It gives us the ability to fund many deals that are outside of our box previously,” Baum said. “We’re going to be launching a couple of sister funds alongside what we currently have and scale the business.”
Franklin Capital was founded in 2012 as an equity fund for companies in financial trouble during, before, or post-bankruptcy. The firm discovered a market for refinancing MCA advances, finding companies that should have never obtained cash advances in the first place. Franklin Capital began offering a tailored debt product to refinance cash advances and offer a pathway to larger, more traditional bank loans.
“We buy out the cash advance deals,” Baum said. “In fact, most if not all of our deals come from brokers in the cash advance industry saying ‘Hey can you get us out of these deals?'”
The firm services a capital class all its own: from $500k to $10 million. Baum noted that most alternative lenders focus on smaller amounts or $25 million+ traditional amounts, and his firm offers a middle ground.
“There is no one in between to provide a more traditional type loan to a borrower that should not be in a cash advance or is in default on their cash advances,” Baum said. “We’re really the outlet for them from the cash advance world into traditional financing.”
Baum further said that his firm had seen a continually growing demand for capital this year.
“I know the cash advance companies have gotten killed, but we’ve actually had the opposite problem,” Baum said. “We don’t do one-off restaurant [advances.] We’re dealing with companies that are larger, more established: they’ve all pivoted into industries that have grown during this period of time.”Last modified: October 23, 2020