Sponsor Finance

Sponsor finance professionals listening to a client from a private equity firm

Financing for New Investment Platforms

Our Sponsor Finance Group provides debt financing solutions to private equity sponsors to close transactions in a timely and efficient manner. We are a reliable partner; delivering distinctive and creative solutions that help sponsor-backed companies seize opportunity in any market environment.

The Western Alliance Sponsor Finance Difference

Western Alliance Bank has defined and refined innovation lending for over 20 years. As the industry and our clients' needs have evolved, so have we. The Innovation Sponsor Finance Team offers creative capital solutions tailored around the intrinsic value of recurring revenue streams of SaaS and On-Premises delivery.

The Sponsor Finance Group's Commercial & Industrial and Franchise teams focus on lower-middle market and middle-market lending to strong, cash flow-based businesses historically in non-cyclical, low capital intense industries. 

  • Win-Win Partnerships: relationship bankers delivering certainty and flexibility
  • Product Breadth & Flexibility: comprehensive suite of financing solutions for companies large and small
  • Scalability & Reliability: solutions suited to buy and build strategies, and a reliable provider of growth capital
  • Experience & Expertise: deep industry expertise, and a pioneer in the recurring revenue financing market  
A sponsor finance specialist meeting with clients

Sponsor Finance Transaction Types

The Sponsor Finance Group provides senior secured cash flow and recurring revenue loans1 focused on the following objectives:

  • Leveraged Buyouts
  • Add-on Acquisitions
  • Growth Capital
  • Refinancings
  • Recapitalizations
A sponsor finance specialist meeting with clients

Lending Products / Solutions

  • Recurring Revenue Loans
  • Unitranche Financings (First Out)
  • Cash Flow and Enterprise Value Based Loans
  • Revolving Lines of Credit for Growth and Working Capital 

Inclusive of a full commercial banking relationship, Western Alliance provides treasury management,2 global market services and more.  

Typical SFG Profiles

  • Annual Recurring or Re-Occurring Revenue >$10MM for Growth Investments
  • Strong Gross and Net Retention
  • EBITDA of $5MM-$20MM+ for Cash Flow Based Investments
  • Consistent Historical Financial Performance
  • Stable and Diversified Customer Base
  • Defensible Market Niche or Competitive Advantage
  • HQ in the United States
    Innovation Team

    Innovation Team

    Commercial & Industrial Team

    Commercial & Industrial Team

    Food & Franchise Team

    Food & Franchise Team

    1. All offers of credit are subject to credit approval, satisfactory legal documentation, and regulatory compliance.
    2. All offers of credit subject to approval. Some products and services may be subject to prior approval or fees. Please contact a Treasury Management Advisor and Relationship Manager for additional details that may apply based on products and services selected.