NEW YORK, Aug. 26, 2013 /PRNewswire/ -- Axial, the online network that connects professionals who operate, advise, finance, and acquire private companies, reported today a significant increase in debt financing activity among its members.
In the last six months, nearly 800 non-equity financing deals originated on the Axial network by members. These deals collectively generated 9,332 connections and represented companies with more than $16 billion in aggregate revenues. This transaction activity represents 200% percent year over year growth in lower middle market lending activity on Axial.
"The environment is still very attractive for alternative debt financing even as speculation mounts that the Federal Reserve will soon end its stimulus program resulting in an increase in interest rates," said Peter Lehrman, Chief Executive Officer, Axial. "Now is an opportune time for acquisitive buyers to secure financing while it is still, on a relative basis, very cheap. We are excited to be an increasingly active facilitator of these transactions that help lower middle market companies succeed with better access to alternative capital."
Matthew Cohen, President of Noble Funding and an Axial member had this to say: "I joined Axial as a way to both access new channels of deal flow and to get assistance on current deals. Since Noble is focused on senior debt, we wanted to build relationships with mezz lenders and private equity groups - and there are extremely well qualified groups in both categories on the Axial network. As a result, we are now working on two $10 million plus deals that we would not have sourced were it not for Axial." Noble Funding is currently ranked fourth on the newly released Axial leaderboard category of lenders.
"The sustained lack of traditional commercial debt financing is driving lower middle market companies to the Axial network to explore non-traditional lending and financing options from senior debt down to unitranche, sale leaseback and even cash flow loans," said Mr. Lehrman. "At Axial, part of our vision is to stimulate that lending activity again by connecting business owners and their advisors to a whole new set of financing options."
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Axial operates the world's most active online network for professionals who operate, advise, finance, and acquire private companies. Each week, more than 200 private companies confidentially connect with more than 13,000 different financial intermediaries, capital providers, and strategic acquirers. Professionals join Axial to expand their network, confidentially source and share opportunities, and gain access to capital, advice and relationships that help them and their organizations succeed. Current active opportunities on Axial represent more than $41 billion in revenue, with more than 75 transactions closing each month as a result of connections made on the network. Axial is headquartered in New York, NY, and is backed by Redpoint Ventures and First Round Capital.
To learn more about Axial, or to request membership on the network, visit www.axial.net.