Curated News
By: NewsRamp Editorial Staff
August 22, 2025
Lafayette Square Raises $65M in Private Placement, Backed by BBB Rating
TLDR
- Lafayette Square secured $65 million in senior notes at 7% interest, providing capital to expand lending and gain competitive advantage in middle market private credit.
- The unsecured senior notes mature in 2030 with a fixed 7% annual rate, issued through a private placement led by Goldman Sachs and co-agents.
- This funding supports Lafayette Square's mission to invest in working-class communities and create 100,000 jobs by 2030 through responsible lending practices.
- Lafayette Square recently received a BBB credit rating from Morningstar DBRS, reflecting strong operational performance and conservative financial management.
Impact - Why it Matters
This development matters because it signals growing institutional confidence in investing in working-class communities, which are often underserved by traditional private credit markets. For readers, it highlights a shift toward more inclusive economic strategies that can drive job creation and stability in overlooked regions. Investors and policymakers should note this as a model for combining financial returns with social impact, potentially influencing broader market trends and encouraging similar initiatives that benefit marginalized populations while maintaining rigorous credit standards.
Summary
Lafayette Square, a private credit firm specializing in lending to middle-market companies in working-class communities, has successfully secured $65 million through a private placement of Senior Notes to qualified institutional investors. The unsecured notes carry a fixed 7.00% annual interest rate and mature in August 2030, with Goldman Sachs leading the transaction as placement agent, supported by Raymond James and Keefe, Bruyette & Woods as co-agents. This financing follows closely on the heels of Morningstar DBRS awarding Lafayette Square USA, Inc. a Long-Term Issuer Rating and Long-Term Senior Debt credit rating of BBB (low) with a Stable Trend, reflecting the firm's strong operational performance, improved profitability, and conservative leverage profile.
Founder and CEO Damien Dwin emphasized that this private placement underscores growing institutional investor interest in supporting working-class people and places, aligning with Lafayette Square's mission to address overlooked opportunities in private credit. The firm's strategy is bolstered by its diversified portfolio, data-driven origination through Potomac X Lafayette Square, and enhanced managerial assistance via its Worker Solutions® platform. Recent financial disclosures, including second-quarter earnings reported on Form 10-Q and Form 8-K, further highlight the company's robust performance and commitment to its goals of supporting 100,000 working-class jobs and investing 50% of capital in underserved areas by 2030.
Source Statement
This curated news summary relied on content disributed by citybiz. Read the original source here, Lafayette Square Raises $65M in Private Placement, Backed by BBB Rating
