Second Avenue Capital Partners, LLC and Tiger Finance announced the closing of an $80 million credit facility for Casper Sleep, Inc., the omnichannel retailer of innovative sleep products including mattresses, pillows, and other sleep accessories. The new financing will be used to retire an existing credit facility and support the ongoing working capital needs of the business.
Launched in 2014, Casper disrupted the industry and quickly grew into one of the most recognizable mattress brands. The company sells products to consumers in North America through its e-commerce platform, retail partners, and Casper-branded stores. In January 2022, Durational Capital Management, LP (Durational) acquired the company in an all-cash deal to take the company private, ushering in a new era of growth and innovation.
“When we acquired Casper, we were excited to partner with Emilie Arel, CEO of Casper, and the team to strengthen their position as an industry-leading brand,” stated Eric Sobotka, Managing Partner at Durational. “We believe the choice of lenders is a vital component to the overall strategy, and SACP and Tiger share our vision for the company. Their extensive consumer expertise allowed them to provide a thoughtful financing solution that supports Casper and drives long-term value.”
“As a Schottenstein affiliate, we leveraged our deep knowledge of the furniture sector when structuring a debt solution for Casper,” stated Mike Sullivan, Managing Director of SACP, the facility arranger and agent for the transaction. “Durational and the Casper team have an exciting strategy to take this already iconic company to the next level. Teaming with Tiger to provide a customized unitranche term debt solution allows the management team to focus their attention on future innovation and driving long-term growth.”
“We’ve partnered with SACP in the past to produce exceptional results for our borrowers,” said Andy Cerussi, Managing Director of Tiger Finance. “With Casper, we see a strong brand, well-recognized in the market, setting a new standard in sleep innovation. We are excited to leverage our deep retail and brand experience to support the Durational and Casper teams.”
About Second Avenue Capital Partners – Second Avenue Capital Partners, LLC (SACP) (www.sacp.com), a Schottenstein Affiliate, specializes in asset-based loans for the broader retail and consumer products industry. Serving middle-market companies, SACP leverages the experience of retail operators, product merchants, and lenders to deliver an array of customized, capital solutions. A unique merchant perspective gives SACP the ability to recognize and unlock value in assets other capital providers often overlook or do not understand. The firm’s tailored financial solutions are a vital resource for clients seeking capital to effectuate strategy and achieve financial objectives. SACP is headquartered in Boston with additional offices in New York, Columbus, and Los Angeles.
About Tiger Finance – Tiger Finance is a division of Tiger Capital Group, which specializes in the provision of secured debt financing and equity investments, as well as comprehensive appraisals for the ABL industry and the disposition of consumer and industrial assets. www.tigerfinance.com
About Casper – Casper believes everyone should sleep better. The Sleep Company has a full portfolio of obsessively engineered sleep products—including mattresses, pillows, bedding, and furniture designed in-house by the Company’s award-winning R&D team at Casper Labs. In addition to its e-commerce business, Casper owns and operates Sleep Shops across North America and its products are available at a growing list of retailers. casper.com
About Durational Capital Management, LP – Based in New York, Durational Capital Management, LP is an investment firm that invests in high-quality consumer companies. Durational approaches its investments with a strategic mindset and focuses on driving long-term value creation through its partnership with top-tier management teams and actively supporting management to drive operational improvements. The firm was founded in 2017, and its investment professionals have extensive experience investing in the consumer sector. www.durational.com