Lead Left Interview – Patrick Dalton (Part 2)

This week we continue our conversation with Patrick Dalton, CEO, Gordon Brothers Finance Company (GBFC). GBCF is a commercial finance company focused on middle market lending. They originate and underwrite secured loans for both asset-rich and cash flow generating businesses across a wide spectrum of industries. 

Second of two parts – View part one

The Lead Left: Do you leverage your balance sheet?

Patrick Dalton: Deutsche Bank and Credit Suisse provide leverage facilities. For the client, it’s a blended cost of capital. How much capital is available? Before BlackRock Kelso we had small holds. Now we’re adding multiple pockets. We can use BRK’s balance sheet – that gets us up to $100 million.

TLL: So I assume not much overlap with them.

PD: There are relationship benefits with BRK. They turn down 90% of what they look at. Most of the referrals they get didn’t fit their lender appetite.