MidOcean Partners has formed a joint venture with Idea Financial that will provide up to $225 million of capital to fund loans of up to $1 million for established small businesses.
The partnership expands Idea Financial’s offering beyond its existing lines of credit of up to $350,000 and is designed to address demand from established small businesses seeking larger and more flexible financing options.
Founded in 2017 by Justin Leto and Larry Bassuk, Miami-based Idea Financial provides lines of credit and term loans to small businesses in 47 states. The company said it has provided approximately $1.5 billion in financing to more than 10,000 small and medium-sized businesses since inception.
Idea Financial also recently completed its inaugural $100 million asset-backed securitization. The new joint venture gives the lender dedicated capital to increase loan sizes and expand origination among existing and prospective customers.
MidOcean said the transaction reflects its strategy of providing tailored capital solutions to specialty finance businesses. The alternative asset manager operates across middle-market private equity, alternative credit and structured equity.
MidOcean launched its credit platform in 2009 and expanded into structured equity in 2024, positioning the firm to provide a wider range of capital solutions across the middle market.
KEY QUOTES:
“Idea Financial has built a disciplined, data-driven lending platform with a strong track record of growth and consistent credit performance. Established small businesses need larger and more flexible financing than they can readily obtain from traditional lenders, and Idea is well positioned to meet that demand. We are excited to partner with the Idea team as they extend their platform to larger loan sizes, and we look forward to supporting their continued growth.”
Teddy Tawil, Managing Director And Co-Head Of Opportunistic Credit At MidOcean Partners
“For years, our customers and applicants have been asking us for larger loans to fund their next stage of growth, and we’ve had to leave much of that demand unmet. This joint venture with MidOcean gives us dedicated capital to say yes to the businesses that already know and trust us. With up to $225 million of capital behind loans of up to $1 million, we can now serve established businesses at a much larger scale. We expect this partnership to drive significant origination growth and to be transformational for Idea Financial.”
Santiago Rubio, Chief Financial Officer Of Idea Financial
