LBC Small Cap Continues Support of Lower Middle Market Companies

May 21, 2020
Small Cap deal announcements

RADNOR, PA, MAY 21, 2020 – LBC Small Cap, an affiliate of LBC Credit Partners, recently provided financing solutions to support the growth of two U.S.-based lower middle market companies.

LBC Small Cap provided a secured mezzanine investment to support the acquisition of SIB Fixed Cost Reduction (“SIB”) by O2 Investment Partners.

Founded by Dan Schneider in 2008 and headquartered in Charleston, South Carolina, SIB is a leading provider of cost reduction services providing invoice analysis, vendor negotiation, and cost monitoring over numerous expense categories for customers across a variety of end markets. O2 Investment Partners is a Midwestern-based private equity firm that seeks to acquire majority interests in lower middle market B2B services, technology, and select niche industrial companies. O2 invests in businesses with earnings growth potential and a clear path to the creation of shareholder value.

Additionally, LBC Small Cap provided senior secured credit facilities and an equity co-investment to support the recapitalization of Breakout EDU by Cascadily LLC, along with key members of management. LBC Small Cap served as Agent for the senior secured credit facilities.

Breakout EDU is based in California and was founded in 2015 by James Sanders, Adam Bellow, and Mark Hammons. Breakout is an immersive learning games platform that brings the challenges of an escape room to the classroom through an innovative physical game kit and complementary digital game platform. Breakout EDU has developed over 1,600 standards-aligned games for use in K-12 classrooms across the United States. Cascadily LLC is a Minnesota-based, independent private equity sponsor that invests in successful education-related businesses in the middle market. As part of the transaction, Joe Cotter, co-founder of Learners Edge, joined the Company’s board of directors to assist the management team in executing its next stage of growth.

Separately, LBC Small Cap announced the addition of Chris Weidner to the investment team as a Senior Associate. He is responsible for working with senior investment professionals to underwrite and execute new investments while assisting with monitoring existing portfolio investments. Prior to joining LBC Small Cap, he worked in Corporate Strategy at Comcast NBCUniversal and as an investment professional at Boathouse Capital.

About LBC Small Cap

LBC Small Cap is focused on originating, executing and managing senior secured, unitranche, junior debt, structured equity and equity co-investments in U.S.-based lower middle market companies. The LBC Small Cap team looks to deploy capital to support funded sponsors, independent sponsors, and family-owned businesses across a broad array of industries.

About LBC Credit Partners

LBC Credit Partners provides middle market and small-cap financing solutions supporting sponsored and non-sponsored transactions throughout the U.S. across a broad range of industries. With over $3 billion of capital commitments, we have provided in excess of $6.7 billion to over 238 issuers throughout our 15-year history.* LBC is headquartered in the Philadelphia area and has offices in Atlanta, Chicago, Los Angeles and New York. To learn more, visit *Information as of December 31, 2019.

The Small Cap strategy, as well as any funds and investments related thereto, is managed by a licensed fund manager in the SBIC Program under the U.S. Small Business Administration, LBC Small Cap Management, L.P., which while owned by certain senior executives of LBC Credit Management, L.P. (“LBC Credit”), is separate and distinct from LBC Credit. For additional information, please contact [email protected]. With respect to LBC Credit Partners VI Feeder LP that are offered in Japan, LBC Credit Funding VI LP will provide to any member of the Japanese public a copy of such documents as are required to be made publicly available pursuant to Article 63 of the Financial Instruments and Exchange Act of Japan. Please contact [email protected] to request such documents.