McKinley Capital Management Launches Direct Lending Program

McKinley Capital Management and the newly forming entity McKinley Alaska Private Investment (final legal documentation for the formation of this company was in process but not finalized as of February 22, 2021) are launching a Direct Lending business to provide local capital solutions for Alaska businesses in the current and post-pandemic economy.

McKinley’s Direct Lending program serves businesses that have need for loans in the $10 million to $500 million range, filling a known void in Alaska for business capital.

According to Rob Gillam, McKinley Capital Management CEO and Chief Investment Officer, “There have traditionally been three sources of capital available to Alaska businesses: small business loans (which typically have a $7 million cap and many restrictions), bank loans (which typically require existing assets for collateral and historical cash flow), and private or public bonds (which are typically for very large businesses and have a $500 million minimum).

“This has left a large gap for capital needs between $7 million and $500 million, and for businesses that need capital in order to acquire the assets or infrastructure necessary to begin or continue operations.

“This lack of capital has been an obstacle for the economic growth and development of Alaska business, so this is the space that McKinley is trying to fill with both private equity capital and private debt capital available to qualifying Alaska businesses.”