Banyan Ridge Capital

Overview

Banyan Ridge Capital Management is seeking $350-500M+ to pursue credit-oriented investments in middle market and lower middle market corporate transactions, legal assets and special opportunities.

• Corporate transactions target lower middle market and middle market companies (frequently founder / family-owned) that are underserved by traditional capital sources or when circumstances are complex, require quick closings and/or creative solutions
• Investments in legal assets may include law firm loans, pre- and post-settlement portfolio transactions, post settlement claims purchases, transactions with legal service providers and similar financings
• Investments typically range $10-40M, structured as first lien senior secured credit facilities with 3-5 year terms (2.5-3 year average duration) that target a gross return of at least 15% (open to lower yielding investments if there is interest from prospective capital partner)
• BRCM is able to underwrite against assets (traditional and non-GAAP) and cash flow
• Investment philosophy is centered on downside protection and risk mitigation while preserving upside potential

Led by seasoned team with decades of experience in private credit, special situations, and litigation finance.

Executive Summary

Banyan Ridge Capital Management is seeking a strategic financial partner to pursue credit-oriented investments in middle market and lower middle market corporate transactions, legal assets and special opportunities (the “Partnership”)

Opportunity

• Private credit, a multi-trillion-dollar market offering a yield premium over liquid markets, has expanded as banks and public lenders retreat from the middle market, with tighter lending standards and structural shifts driving larger direct lending deals and investor access to middle-market income opportunities
• Corporate private credit benefits from a supply-demand imbalance and substantial dry powder at PE firms, with growing opportunities in direct lending as banks retreat and access expands, especially in the lower middle market, esoteric assets, niche industries, and less competitive processes
• Legal finance is a non-correlated asset class resilient to economic recessions, offering a hedge against market volatility, with demand driven by competition, outdated business models, and technological change as law firms expand contingency practices, adopt flexible financing options, and benefit from modernizing regulations

Traction/Milestones

• BRCM’s first investment vehicle (structured as an SMA with a large financial institution) was launched in 2020 and invested in a combination of pre-settlement legal assets, specialty finance and corporate credit opportunities*
• A separate investment vehicle focused on post-settlement legal assets was launched in 2023 and supported by the same investor as the first vehicle*
• BRCM has closed several other corporate private credit, special situation and legal asset investments with other investors outside of the existing vehicles
• To date, BRCM has led over $335 million* of closed deals and has committed $225 million* of its mandate across thirteen transactions, with two additional investments currently under LOI
• To date, BRCM has generated a gross IRR of 40.3%* and a gross multiple of invested capital of 1.65x* on six fully and partially realized investments; expected portfolio performance of over 20%*

*Given the private nature of this transaction, Castle Placement has not validated this information. Additional information can be provided to prospective investors by Banyan Ridge Capital Management.

Solution/Strategy

• Targets complex/underserved opportunities with creative structures, achieving superior risk-adjusted returns

• Corporate Credit employs ‘bottoms-up,’ PE-style diligence, integrating internal analysis, third-party verification (QofE), and specialized consultants for robust downside mitigation

• Legal Assets diligence focuses on merits, damages, duration, and collectability, reinforced by specialized third-party litigators and industry experts

• Underwriting prioritizes downside protection via a margin of safety, senior positions, strong EV/asset coverage, and robust structural covenants/controls with proven partners

About Us

Founded in 2020, BRCM is a private investment firm based in Miami that is focused on non-traditional investment opportunities in corporate private credit, legal assets and special opportunities

Note: BRCM’s affiliate, Banyan Ridge Capital Partners, LLC (“BRCP”), was the original founding entity.

Unique Investment Strategy

The Partnership will originate corporate private credit transactions in the middle and lower middle markets, legal investments and special opportunities

Investment Return Profile

Target Return Profile

Portfolio Summary

• To date, BRCM has led over $335 million of closed deals and has committed $225 million of its mandate across thirteen transactions
• IRR and MOIC on six fully and partially realized investments of 40.3% and 1.65x. Returns across four fully realized transactions of 38.8%
• Expected returns across the entire portfolio of 22.3% and 1.65x

Investment Process Overview

BRCM’s disciplined investment process targets non-competitive, high quality investment opportunities

• Our team is composed of investment professionals AND barred attorneys from large investment funds with deep experience in direct lending, litigation finance, private equity, specialty finance, complex credit and other esoteric assets
• We believe the quality and experience of the firm’s leadership creates access to unique investments not available to other market participants
• Sophisticated structuring and monitoring capabilities focused on downside protection and enhanced visibility throughout the investment lifecycle

Investment CRITERIA – Corporate INVESTMENTS

Investment CRITERIA – LEGAL ASSETS

Sourcing

Deep and extensive network of industry participants provides access to non-competitive investment opportunities

Underwriting process – Corporate Investments

BRCM’s underwriting approach for corporate investments is focused on Internal Diligence, 3rd Party Verification, Sensitivity Analyses and Downside Mitigation

• Private equity style due diligence with an emphasis on “bottoms-up” credit analyses, financial analyses, industry review and the utilization of sophisticated third-party consultants such as accounting/QofE firms, background check investigation firms and industry experts

Underwriting process – Legal Assets

BRCM’s legal assets underwriting approach is largely focused on four core pillars:  Merits, Damages, Duration and Collectibility

• Intensive review of case merits, counterparty attributes and valuation analysis
• Utilization of sophisticated third-party consultants such as seasoned litigators, accounting/QofE firms, background check investigation firms and industry experts

STRUCTURING FOR PRESERVATION OF CAPITAL

• Core structuring and underwriting philosophy is to PURSUE DOWNSIDE PROTECTION by seeking to:

-Invest an amount that creates a meaningful margin of safety vs. the base case outcome

-Focus on senior positions with considerable EV and/or asset coverage

-Invest with strong operators and/or sponsors with established track records

• We believe that our proficiency across corporate, legal and special situation investments is a competitive advantage and allows us to be structure agnostic where we can create appropriate downside protection
• Structural protections frequently include tight business-specific financial covenants, board observation rights, granular financial reporting requirements, strict negative covenants, cash controls and occasional guarantees

ASSET MANAGEMENT

BRCM’s robust asset management approach seeks to mitigation risk and maximize value

Management Team

Peter Meyers – Co-Founder and Managing Partner

• Peter is a Co-founder and Managing Partner of Banyan Ridge Capital Management and co-leads the firm’s investment committee, strategic direction, new business initiatives, asset management and capital raising. 
• Peter has over 20 years of institutional private credit and private equity experience, having led or co-led strategies for prominent investment firms.  Prior to founding Banyan Ridge, Peter was a Managing Director at 777 Partners, a Miami-based investment firm with over $10 billion AUM, where he ran the Private Credit and Special Opportunities strategies. In this capacity, he focused on sourcing, structuring, executing and managing complex and unique direct lending and private equity opportunities that were frequently uncorrelated to market conditions and structured to generate significantly outsized returns relative to the overall risk profile. Prior to joining 777 Partners in 2018, Peter was a Director for Arena Investors, a global investment firm headquartered in NYC with over $4 billion AUM, focused on illiquid credit and special situations. In this role, he led numerous non-sponsored and sponsored direct lending investments across various industries and geographies. Prior to Arena, Peter was a Vice President in the credit fund at Comvest Partners, a private investment firm with $15 billion AUM. Peter also worked for a middle market private equity firm and York Street Capital Partners, an investment firm focused on private debt and equity investments. Earlier in his career, he was an investment banker in the Leveraged Finance group at Morgan Stanley in New York.
• Peter graduated cum laude from the University of Pennsylvania with a B.A. in International Relations with a Cluster in Business Studies from the Wharton School.

Stephen McMullin – Co-Founder and Managing Partner

• Stephen is a Co-founder and Managing Partner of Banyan Ridge Capital Management and co-leads the firm’s investment committee, strategic direction, new business initiatives, asset management and capital raising. 
• After a decade in the corporate plaintiff litigation finance space, Stephen identified law firm lending as an attractive sub-asset class within the litigation finance industry.  Stephen’s cumulative deployments in the asset class exceed $600 million worth of loans, bespoke corporate financings and special situations since entering the industry in 2014.  Prior to co-founding Banyan Ridge, Stephen was a Director at Brickell Key Asset Management, an investment advisory firm focused on equity-like claims investing. Stephen started his career as an analyst in FICC / Equities at Goldman Sachs & Co. where he focused on U.S. and European equities microstructure.
• Stephen is a graduate of Harvard Law School, the University of Oxford (MA Oxon) and Georgetown University (Magna Cum Laude).  He is a member of both the New York and Washington D.C. Bar Associations.

Daniel Narciso – Vice President

• Daniel has over six years of litigation finance experience with a focus on law firm lending, single case financings and wrapped portfolio transactions. Prior to Banyan Ridge, Daniel was the Director of Underwriting for a South-Florida based litigation finance firm, with a special focus on single-event and multidistrict litigation (MDL) claims. In this capacity, he focused on sourcing, underwriting and structuring credit facilities for law firms across the U.S. Daniel has deployed over $300 million through various credit facilities ranging in focus from commercial matters and antitrust claims to intellectual property claims, with a focus on equity-like returns.
• Daniel is a graduate of the University of Miami (B.B.A. in Finance) and the University of Miami School of Law (Magna Cum Laude). At the University of Miami School of Law, he was an editor for the University of Miami Law Review, a member of the Order of the Coif, and placed in the top three of various national bankruptcy moot court competitions. He is a member of the Florida Bar.

Sampson Ngo – Vice President

• Sampson has over seven years of investment banking and institutional investing experience. Prior to Banyan Ridge, Sampson worked at Deerpath Capital Management and a Miami-based investment firm, where he focused on underwriting and executing investments across the capital structure in both private credit and private equity. He began his career as a coverage banker at SunTrust Robinson Humphrey in New York.
• Sampson holds a B.A. in Economics from Cornell University.

Specific Risks

• Cash flow decline/potential reduction in borrower or asset cash generation, impacting repayment capacity
• Asset or Enterprise Value decline/lower-than-expected collateral or enterprise value, affecting recovery outcomes
• Duration risk/extended timelines to realization, particularly within the legal assets strategy, which can delay liquidity and impact returns
• Sourcing risk / slowdown in niche, relationship-driven deal flow limiting capital deployment capacity
• Limited exit optionality / inability to refinance, syndicate, or sell bespoke positions prior to maturity
• Third-party dependency risk / inaccurate or delayed analyses from external specialists impairing underwriting quality
• Complexity and structuring risk / bespoke or rapid-execution structures increasing documentation and covenant-calibration errors that may weaken downside protection
• Private securities are speculative, illiquid, and carry a high degree of risk – including the loss of the entire investment