Pasadena Private Lending Inc. announced last month that it closed on a $150 million credit facility with Cleveland-based KeyBank National Association.

The new credit facility will extend PPL’s overall capital base to more than $350 million, the company said. It will also strengthen the firm’s mission of lending to companies in the lower middle market.

“We continue to see robust demands from business owners in the lower middle market who are underserved by traditional lenders,” said Michael McAdams, president of PPL, in a statement. “Expanding our capital based allows us to deliver flexible, reliable, and timely financing to more clients while upholding the prudent underwriting standards that define our firm.”

PPL offers senior secured loans, which range from $2 million to $15 million. Businesses often seek PPL’s help when they need capital to acquire real estate, buy out minority investors or fund growth that outplaces their bank’s capacity, McAdams said.

‘Next frontier’

The transaction comes as private lenders are seeking some of the business that has been considered the domain of traditional banks in the past, said Christopher Tucker, managing director at KeyBank.

“This facility represents the next frontier in private credit adoption as well as an alignment of values we support PPL’s ongoing growth and commitment to successful entrepreneurs nationwide,” Tucker said.

Private lenders are afforded more liberties than traditional banks, said Iain Whyte, PPL’s chairman and chief executive.

“Traditional banks employ talented professionals, but they are bound by rigid regulatory frameworks designed to protect FDIC-insured deposits,” Whyte wrote in an email to the Business Journal. “These rules often disadvantage smaller private companies – particularly those without audited financials, experiencing rapid growth, or pursuing acquisitions.”