In January 2023, American Battery Solutions (ABS), a Michigan-based company that specializes in the development of lithium-ion battery systems for electric vehicles, sought alternative financing solutions to address their capital requirements. The company, which started operations back in 2019, had successfully diversified its product line to include offerings for commercial, light, and marine electric vehicles. In order to finance their manufacturing plant, they turned to Flatbay Capital. Flatbay was impressed by the management team and extended a $5.6 million CRE loan to the battery technology company.

The infusion of capital helped ABS achieve their growth goals. By November of the same year, the company announced its agreement to be acquired by Komatsu, a $25 billion multinational, Japanese conglomerate that manufactures construction, mining, forestry, and military equipment. The CTO and President of Komatsu’s development division, Taisuke Kusaba, expressed admiration for the battery company’s performance in various markets as well as the solid foundation laid by the company’s skilled workforce.

The acquisition by Komatsu not only provided ABS with a strategic exit on the bridge loan provided by Flatbay Capital, but also the opportunity for expansion into new, global markets. Flatbay Capital’s managing partner Elliot Smith states: “We have seen great opportunities to help private equity portfolio companies with our strategic CRE debt solutions. It’s rewarding to see our clients’ innovative battery systems technology be integrated into a global manufacturer’s line of industrial products. Our client is on the cutting edge of electrification and we are ecstatic that our capital helped this client with a successful merger”.

This success story illustrates the critical role played by private credit lenders, like Flatbay Capital. Flatbay Capital provides alternative financing solutions when traditional sources (such as banks or lifecos), may not be readily accessible. The mission is clear: to help promising companies stabilize and contribute to their continued success.