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.”
McKinley has hired industry veteran Logan Birch to manage its new Direct Lending program. Birch is a lifelong Alaskan with career experiences at ASRC, Alaska Growth Capital, and Wells Fargo. As the new McKinley Alaska Private Investment Vice President of Direct Lending, Birch joins Joe Jacobson (Vice President of Private Equity) on the private investment team led by John Wanamaker, McKinley Alaska’s President/Director of Private Investment.
“I’m excited to join the McKinley team and eager to help launch the new Direct Lending program,” says Birch.
“My almost twenty years in Alaska’s banking, lending, and finance roles across numerous industries in Alaska has given me a unique appreciation for the role capital plays in developing our economy. I look forward to working with McKinley’s disciplined investment process to support Alaska businesses as we make it beyond the pandemic and work together to grow and diversify our economy.”
Setting the Price at the Pump
Gasoline and diesel prices fluctuate with the crude oil market and refinery capacity, and not always to the advantage of gas stations. “Whether the price of oil is low or high, it’s not necessarily driving profit,” Vitus Energy Co-founder Mark Smith says. “In fact, high prices consume more working capital, so we’re not a big fan of high prices, either.”