Zenith Group Advisors Expands Supply Chain Finance Program for Private Equity Portfolio Companies

New financing structure provides growth capital without impacting debt ratios, preserving exit valuations for leveraged buyouts

NEW YORK, NY, UNITED STATES, August 26, 2025 /EINPresswire.com/ -- Zenith Group Advisors today announced an expansion of its supply chain finance program to address the unique needs of private equity-backed companies, providing off-balance sheet working capital that preserves leverage ratios critical to exit valuations.

The program enables PE portfolio companies to access growth capital structured as trade payables rather than financial debt, maintaining optimal debt-to-EBITDA ratios while funding rapid expansion. This structure is particularly valuable for leveraged buyout scenarios where additional debt could breach existing covenants or impact exit multiples.

"PE-backed companies need capital velocity without adding leverage," said Cole Reifler, CEO of Zenith Group Advisors. "Traditional bank financing takes months and impacts debt ratios. We deploy capital in days with no impact on leverage metrics."

Private equity firms typically execute acquisitions with extensive leverage and strict covenant requirements. Additional debt financing often triggers covenant violations and can reduce enterprise value at exit by impacting key financial metrics. Zenith's solution appears as a trade payable on the balance sheet, avoiding these constraints while providing the working capital needed for aggressive growth strategies.

The program requires no additional collateral or covenants beyond existing credit facilities. Capital deployment typically occurs within five business days, compared to 60-90 days for traditional bank amendments. This speed enables portfolio companies to capture time-sensitive market opportunities and maintain competitive advantages during expansion phases.

"The difference between a 4x and 4.5x EBITDA multiple at exit can mean tens of millions in value creation," Reifler said. "By moving financing off the debt line and into trade payables, we help PE firms maximize returns while giving their portfolio companies the flexibility to grow."

Zenith is the market leader in providing innovative payables financing solutions to middle-market companies, partnering with businesses ranging from $50 million to $1 billion in annual revenue. The company focuses on manufacturing, logistics, and distribution sectors where working capital velocity directly impacts competitive positioning. A recent client, a $250 million manufacturing company, accessed $12 million through the program while improving its debt-to-EBITDA ratio by 0.4x.

The expansion comes as private equity dry powder reaches record levels and firms seek differentiated strategies to drive portfolio company growth without compromising balance sheet integrity. Traditional lending constraints have created significant demand for alternative financing structures that preserve the flexibility needed for successful exits.

Damon Stewart
AmpLocal PR & Digital
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