Firms & Funds

Oaktree-backed GSV Growth nears $275 mln cap for direct lending

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Photo of GSV Growth's David Spreng courtesy of the firm.
  • BDC approaches cap on $275 mln
  • Formed by David Spreng
  • Oaktree invested in December

GSV Growth Credit, a private business-development company that counts Oaktree Capital Group as an investor and partner, is nearing the cap on its debut vehicle, according to a marketing document seen by Buyouts.

GSV Growth Credit, which is part of the Global Silicon Valley merchant-banking organization, raised $210 million as of December 2016 and is approaching its $275 million hard cap, the document said.

Chief Executive David Spreng in 2015 formed GSV Growth Credit, where he is also chairman and chief investment officer. Spreng also co-founded Decathlon Capital Partners, and for more than 18 years he was with early-stage-focused Crescendo Ventures.

Oaktree invested $125 million in the fund in December, according to a regulatory filing. GSV also appointed Oaktree Managing Director Brian Laibow to the fund’s board. The agreement between GSV Growth and Oaktree allowed the credit specialist to appoint one director, regulatory filings show.

A spokeswoman for Oaktree declined to comment.

The BDC loans from $2 million to $15 million in secured loans and select equity investments of growth companies. On the sponsored side, GSV Growth lends to companies that have raised Series A or later rounds in the software-as-a-service, tech, life sciences, media and entertainment, and financial technology sectors, among others.

On the non-sponsored side, the firm lends to companies with $20 million-plus revenue and 10 to 15 percent annual growth that are profitable or cash-flow-positive in SaaS, tech, healthcare and business services, light industry and other sectors.

Other executives on the GSV Growth team include Partner Tom Raterman, who is chief financial officer, and Matthew Hanson, partner and head of origination. Prior to GSV Growth, Hanson led investments for GSV Capital, and prior to that he was head of corporate finance for ThinkEquity Partners. He also held roles at Banc of America Securities and Goldman Sachs.

Action Item: Check out GSV Growth’s most recent SEC filing: http://bit.ly/2mgO50X

Photo of GSV Growth’s David Spreng courtesy of the firm.