Bow River Adds $2B ABL Team in Major Acquisition

Denver’s Bow River Capital has acquired the asset-based lending business of Dallas-based Park Cities Asset Management, a move that significantly enhances Bow River’s presence in the private credit sector.

The acquisition brings a 12-person team from Park Cities into Bow River’s organization and adds a lending strategy focused on originating privately negotiated, non-traded loans—typically with 2-3 year terms—targeting attractive yields in asset-based finance.

Deal Highlights

• Expanded Team and Expertise: Bow River gains a 12-person team with deep sector expertise and a strong track record from Park Cities.

• Business Focus: The acquired business specializes in secured, flexible financing solutions for lower middle market companies, and has deployed more than $2 billion since its founding in 2018.

• Strategic Growth: Bow River views this acquisition as a key part of building a comprehensive, multi-asset alternative investment platform with a focus on the “Rodeo Region,” which includes 14 states in the Rocky Mountain West and Southwest.

Leadership and Outlook

• Bow River’s Perspective: CEO Blair Richardson highlighted Park Cities’ strong cultural fit and sector knowledge as drivers for the acquisition, calling it an “important milestone” for Bow River’s private credit offering.

• Park Cities’ Perspective: Managing partners Andy Thomas and Alex Dunev expressed enthusiasm about joining Bow River and believe the partnership will allow them to accelerate lending growth while maintaining their core values.

_{Sources: prnewswire.com, alternativecreditinvestor.com, abfjournal.com, opalesque.com, alternativeswatch.com, bizjournals.com, dallasinnovates.com}

Key insights for alternative business lenders

The recent acquisition of Park Cities Asset Management's asset-based lending (ABF) business by Denver-based Bow River Capital is more than just a transaction; it's a decisive maneuver to solidify its position in the competitive private credit landscape.

Expansion of Private Credit Capabilities The acquisition directly expands Bow River's private credit offering, integrating a proven ABF strategy that originates privately negotiated, non-traded loans with typically 2-3 year terms, targeting attractive yields in asset-based finance. This isn't just adding volume; it's about adding a distinct, high-yield product line that diversifies their private credit portfolio.

• Strategic Alignment: This move aligns perfectly with Bow River's existing focus on providing flexible private credit solutions to the U.S. middle market, particularly where traditional bank lending is in decline. The synergy between existing private credit and the new ABF strategy means a broader suite of capital solutions for businesses, reinforcing Bow River's position as a comprehensive alternative lender.

• Addressing Market Gaps: By targeting these specific loan structures and terms, Bow River positions itself to address the growing "dry powder" gap for private equity buyout financing and other middle-market capital needs. This is not a speculative play but a calculated response to demonstrated market demand for non-traditional, collateral-backed financing.

• Enhanced Diversification: The addition of a specialized lending strategy focused on tangible, financial, and real assets as collateral inherently diversifies Bow River's risk profile within its private credit holdings, offering a more robust investment proposition to institutional clients seeking stable, secured returns.

Integration of a High-Caliber Team and Proven Track Record A core component of this acquisition is the integration of a 12-person team from Park Cities, bringing with them deep sector expertise, a strong track record, and a like-minded culture. This isn't merely an asset transfer; it's an infusion of human capital and a validated operational blueprint, immediately bolstering Bow River's capabilities.

• Experience Reinforcement: The Park Cities team, founded in 2018 by J. Andrew Thomas and Alex Dunev, has already deployed over US$2 billion across more than 50 portfolio companies and distributed over US$150 million to investors. This proven operational success mitigates integration risk and adds immediate, substantial value to Bow River's ABF arm, which previously had 76 years of experience partnering with 30 lower-middle market borrowers.

• Leadership Synergy: Blair Richardson, Bow River's founder and CEO, explicitly cited the team's expertise and track record as key attractions, emphasizing the cultural fit. This suggests a deliberate effort to acquire not just a business, but a highly effective, complementary leadership group that can seamlessly integrate and contribute to the firm's overarching vision.

• Accelerated Growth: Andy Thomas, former managing partner at Park Cities, noted that Bow River’s commitment to long-term partnerships and scale will allow their lending strategy to accelerate growth and deepen service to investors and lending partners. This implies an immediate increase in capacity and market reach, leveraging Bow River's broader platform to expand its footprint in the lower-middle market.

Targeting the Underserved Lower-Middle Market The combined entity remains laser-focused on the underserved lower-middle market, a segment often overlooked by traditional banks. This strategic emphasis allows Bow River to operate with less competition while offering attractive yields to investors.

• Proprietary Sourcing Advantage: Bow River's existing ABF team already boasts a robust proprietary sourcing model, specializing in structuring loans backed by diversified, high-quality collateral. The integration of Park Cities' network and capabilities will undoubtedly enhance this, leading to a wider funnel of exclusive, high-quality collateral-backed opportunities in a less crowded field.

• Rigorous Risk Management: Both entities emphasize robust risk management. Bow River's ABF team employs rigorous processes focusing on transaction structure enhancements, active asset allocation to prevent outsized weighting in any single investment or asset class, and ongoing portfolio monitoring. The combined experience ensures that targeting attractive yields does not come at the expense of disciplined underwriting and capital preservation.

• "Rodeo Region" Advantage: Bow River has a distinct advantage in its "Rodeo RegionTM" focus, which refers to overlooked geographic areas within the middle market. This regional specialization, combined with a focus on the lower-middle market, creates a powerful niche that can consistently generate superior risk-adjusted returns by avoiding the hyper-competitive segments frequented by larger, traditional lenders.

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