Texas Capital (TCBI) Unveils Capital Direct Lending Platform

Core Insights - Texas Capital Bancshares, Inc. (TCBI) has launched a new private credit strategy through the Texas Capital Direct Lending (TCDL) platform, focusing on Texas-based middle market companies and private equity sponsors [1][2][4] - TCDL aims to provide non-bank private capital, primarily offering senior secured floating rate term loans to businesses with EBITDA between $10 million and $30 million [2][6] - The launch of TCDL is a significant milestone for Texas Capital, enhancing its position as a leading financial services provider for middle-market companies [3][4] Company Developments - Tim Laczkowski has been appointed as Managing Director to lead the new Direct Lending division, overseeing fund management, underwriting, investment, and portfolio management for TCDL [5] - The TCDL platform will be integrated into Texas Financing's Corporate & Investment Bank, allowing clients to access a wider range of financing solutions [2][4] - Texas Capital aims to provide a consistent stream of capital to growth-oriented middle-market companies, enhancing its full-service financial institution capabilities [6] Industry Context - The private credit market is experiencing significant growth, with its size estimated at approximately $1.5 trillion at the start of 2024, up from $1 trillion in 2020, and projected to reach $2.8 trillion by 2028 [7] - TCBI's entry into the private credit market aligns with a trend of financial institutions exploring this lucrative sector, with other firms like Raymond James and Stifel Financial also expanding their private credit offerings [8][9] - In the past six months, TCBI's shares have declined by 1.2%, contrasting with the industry's growth of 10.5% [10]