NXT Capital

NXT Capital stands as a leading provider of structured financing solutions tailored for the U.S. middle market. Operating primarily as a direct lender and asset manager, the firm specializes in delivering flexible debt capital to support a diverse range of transactions. Their core business revolves around providing non-investment grade senior secured, unitranche, and second lien loans, distinguishing them from traditional equity-focused venture capital firms.

The firm's Corporate Finance Group is a significant component, offering cash flow-based financing for leveraged buyouts, recapitalizations, and growth capital initiatives. NXT Capital typically targets companies with an EBITDA ranging from $5 million to $75 million, focusing on established businesses rather than early-stage startups. This strategic focus enables them to support private equity sponsors and management teams in their strategic objectives.

NXT Capital manages a substantial portfolio, with over $10 billion in committed capital under management, demonstrating their significant presence in the private credit market. Their typical loan sizes generally range from $10 million to $150 million, though they have the capacity to provide financing up to $250 million for larger, more complex transactions. These figures reflect their lending capacity rather than equity investment sizes.

In essence, NXT Capital's expertise lies in providing robust debt solutions to mature middle-market companies. While they are a crucial source of capital, their operational model is centered on debt financing, making them a distinct entity from venture capital firms that primarily engage in equity investments for high-growth, often pre-profit, businesses.