ABACUS FINANCE CLOSES SENIOR FINANCING FOR H.I.G. GROWTH PARTNERS’ INVESTMENT IN LULU'S FASHION LOUNGE


August 13, 2014 - Abacus Finance Group, LLC, a New York-based direct specialty lending company dedicated to providing cash-flow senior financing for private equity-sponsored, lower-middle market companies, announced today that it served as Administrative Agent and Sole Lead Arranger for senior secured credit facilities to support the leveraged recapitalization of LuLu’s Fashion Lounge (LuLu’s) by H.I.G. Growth Partners (H.I.G.). In addition to providing the financing, Abacus made an equity co-investment in LuLu’s.

LuLu’s, headquartered in Chico, CA, is a rapidly growing, uniquely differentiated, online retailer of young women’s apparel, shoes and accessories. Boston-based H.I.G. Growth Partners is the dedicated growth capital investment affiliate of H.I.G. Capital, a leading global private equity investment firm with over $15 billion of capital under management.

“The transaction went smoothly from the outset because the Abacus team knows the e-commerce business model well, and the flexibility they provided with respect to transaction structure was important to us,” said H.I.G. Principal Evan Karp. “We know we made the right choice to work with them and look forward to closing more transactions together in the future.”

“H.I.G.’s investment strategy matches up well with our focus on smaller middle market companies,” said Tim Clifford, President and CEO of Abacus. “They brought us a terrific company, and we were so impressed by the business model and the management team that we chose to make an equity co-investment. As Evan mentioned, the important aspects of the financing from his perspective were our industry knowledge and the structuring flexibility we offered – those along with being able to provide certainty of close are key ingredients of what we call our Total Partnership Approach.”

Abacus team members involved in the transaction included Sean McKeever and Eric Petersen. RLJ Credit provided the mezzanine financing, and legal counsel was provided to Abacus by Goulston & Storrs, LLP.

About LuLu's Fashion Lounge

Headquartered in CA, LuLu’s has emerged as the online style destination of choice for trendsetters worldwide. The Company delivers a superior experience to consumers by curating a unique product assortment that includes the coveted LuLu’s label, emerging new designers and favorite go-to brands. LuLu’s has leveraged this differentiated merchandising strategy to foster a highly-engaged and loyal customer base. Visit LuLu's.com for more information.

About H.I.G. Growth Partners

H.I.G. Growth Partners is the dedicated growth capital investment affiliate of H.I.G. Capital, a leading global private equity investment firm with over $15 billion of capital under management. It seeks to make both majority and minority investments in strong, growth oriented businesses located throughout North America, South America and Europe. H.I.G. will invest $5 million to $30 million in equity in a given company and target investments in profitable growth oriented businesses with between $10 million and $100 million in revenues. It considers investments across all industries, but focus on certain high-growth sectors where H.I.G. has extensive in-house expertise such as technology, healthcare, internet and media, consumer products and technology-enabled financial and business services. Growth Partners strives to work closely with our management teams to serve as an experienced resource, providing broad-based strategic, operational, recruiting and financial management services from a vast in-house team and a substantial network of third-party relationships. Visit www.HIGgrowth.com for more information.

About Abacus Finance Group, LLC

Abacus Finance is a direct specialty lending company, focused on providing cash flow senior financing to private equity-sponsored, lower-middle market companies nationwide.  Formed in June 2011, Abacus targets debt financing opportunities of up to $50 million with a typical hold size ranging from $10 million to $25 million, and the companies it finances generally have EBITDA between $3 million and $15 million. Abacus is an affiliate of New York Private Bank & Trust, the holding company for Emigrant Bank, which was founded in 1850. 

Abacus Finance is headquartered at 6 East 43rd Street, 20th Floor, New York, NY 10017.  All inquiries and new investment opportunities should be directed to Tim Clifford at 212-850-4620 or to cliffordt@abacusfinance.com.  Visit abacusfinance.com for more information.

The Total Partnership Approach, which is a registered trademark of Abacus Finance, LLC, brings cash-flow financing expertise, industry knowledge and exceptional client service over the lifecycle of each investment.