Bell Capital Finance Provides Specialized Lending
Bell State Bank & Trust in Minneapolis has created Bell Capital Finance, a new division focused on providing senior debt financing to lower middle-market businesses that are located in the upper Midwest and are majority owned by a private equity group. The division will also target non-sponsored transactions (e.g., management buyouts, dividend recapitalizations, etc.) in Bell’s geographic footprint where the credit profile is favorable. Clients will typically have $2 million to $7 million in earnings before interest, taxes, depreciation and amortization (EBITDA).
“As we have been expanding our banking business in the Twin Cities the past several years we have identified a great market opportunity in this space,” said Todd Lee, Executive Vice President and Twin Cities Managing Director for Bell State Bank & Trust. “We believe there is substantial demand for a local provider of senior debt in lower middle-market leveraged transactions.”
Bell Capital Finance leaders Michael Mahoney and Seth Hove both have extensive experience in the specialized lending areas that are the sole focus of Bell Capital Finance. Mahoney has over 20 years of experience working on commercial finance transactions in the Twin Cities market, including extended periods at multinational banks. He has worked at Wells Fargo, JPMorgan Chase, and has spent the past six years as a vice president for business development with Medallion Capital, a mezzanine lender focused on lower middle market investments. Hove has almost 10 years of leveraged lending experience in the Twin Cities. He worked at LaSalle Bank and most recently The PrivateBank and Trust Company, where his responsibilities as managing director for commercial banking included business development, relationship management and portfolio management.
This announcement follows a period of rapid Twin Cities growth for Bell State Bank & Trust, which has its headquarters in Fargo N.D. The $3 billion bank acquired Bell Mortgage in 2011, opened its first full-service Twin Cities bank location in 2012, acquired The Business Bank (and its Prime Mortgage division) in 2013, and recently announced its intent to open a new full-service bank in Woodbury later this year.
“The launch of Bell Capital Finance is an exciting new phase in the multi-year expansion of Bell’s banking franchise in the region,” said Lee.
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