Northwest Bank Sponsor Finance Research
Advisory Approach
Northwest Bank operates differently from traditional M&A advisors—it is a bank with a dedicated Sponsor Finance division that provides debt capital to private equity firms for acquisitions, recapitalizations, and growth investments. The firm focuses on the lower middle market, typically providing senior secured cash flow loans ranging from $5 million to $30 million per transaction to companies generating EBITDA between $2 million and $10 million. Rather than advising sellers on sale processes, Northwest Bank partners with private equity sponsors, independent sponsors, and family offices to provide the debt financing that makes buyouts possible.
The Sponsor Finance team brings a lender's perspective to transactions, evaluating cash flow coverage, asset quality, and repayment capacity. With over $1 billion in commitments and more than 200 transactions completed, the team has navigated multiple economic cycles and developed deep expertise in structuring flexible debt facilities that support leveraged buyouts, add-on acquisitions, and recapitalizations.
Sector Focus
Northwest Bank's Sponsor Finance group maintains a generalist mandate but has particular depth in several industries. In aerospace and defense, the team has financed companies like 3P Processing, a Wichita-based provider of metal-finishing and testing services with NADCAP certifications and OEM approvals from Boeing, Lockheed Martin, and other prime contractors. In manufacturing, they supported American Automation Group, a combination of Southern Tooling and Tuttle that designs and manufactures custom automation equipment for industrial customers.
The healthcare sector represents another area of focus, with financing provided to US BioTek Laboratories for its acquisition of RealTime Laboratories (expanding testing capabilities for immunology and chemistry profiles) and to Bright Direction Dental, a dental support organization that acquired Elmhurst Dental to grow its network to over 40 locations across Illinois and Wisconsin. Business services is also active, including Citadel Security Group, a provider of manned guarding and security services to government, healthcare, and infrastructure markets.
Deal Track Record
Northwest Bank's Sponsor Finance team has completed over 200 transactions with aggregate commitments exceeding $1 billion. Recent financings include:
- Littlejohn Capital / 3P Processing (May 2025): Financed acquisition of 3P Processing, a Wichita-based aerospace metal-finishing company serving Boeing, Gulfstream, and Lockheed Martin
- LFM Capital / American Automation Group (October 2024): Financed acquisition and growth initiatives for American Automation Group, combining Southern Tooling and Tuttle in custom automation equipment
- Pike Street Capital / US BioTek Laboratories (July 2024): Financed US BioTek's acquisition of RealTime Laboratories, expanding CLIA and CAP-accredited testing capabilities
- Bright Direction Dental / Elmhurst Dental (March 2025): Financed acquisition of Elmhurst Dental, expanding BDD's dental support organization to 40+ locations
- Great Range Capital / Citadel Security Group (July 2024): Financed acquisition of Citadel Security Group, a Missouri-based security services provider
- Kian Capital Partners / Purgo Holdings (2024): Financed portfolio company comprised of LAKOS Filtration and filtration solutions
- Branford Castle Partners (2024): Financed recapitalization and growth of existing portfolio company
- Osceola Capital Management (September 2024): Financed refinance of existing portfolio investment
The team works with a diverse set of sponsor types including private equity firms (Littlejohn Capital, LFM Capital, Great Range Capital), independent sponsors (Pike Street Capital), and family offices, providing both one-time acquisition financing and ongoing credit facilities to support portfolio company growth.
Process & Fee Structure
As a lender rather than an advisor, Northwest Bank's process centers on credit underwriting and due diligence rather than sale process management. The team evaluates potential borrowers based on cash flow stability, management quality, industry position, and asset coverage. Their financing products include term facilities, leveraged-based revolving lines of credit, and delayed draw term loans—providing flexibility for sponsors to structure transactions appropriately.
Typical transaction structures are first-lien or unitranche facilities with advance rates tailored to cash flow and asset quality. As a regulated bank, Northwest Bank deposits its loans and holds them on balance sheet, providing a stable, long-term partnership approach rather than a securitization model. The team emphasizes efficient execution and responsive decision-making to meet the fast-paced timelines typical of private equity transactions.
Buyer Network
Northwest Bank's Sponsor Finance team has built relationships with over 100 private equity firms, independent sponsors, and family offices across the United States. Key relationships include Littlejohn Capital (family office with roots in Littlejohn & Co.), LFM Capital (Nashville-based manufacturing-focused PE), Pike Street Capital (Seattle-based independent sponsor), Great Range Capital (Kansas City-based middle market PE), Kian Capital Partners, Heartland Growth Partners, Osceola Capital Management, and Branford Castle Partners. This sponsor base provides a repeat transaction pipeline, with the team often supporting multiple acquisitions for the same sponsor over time.
Competitive Positioning
Northwest Bank differentiates from other debt providers through several key advantages:
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Bank Balance Sheet: As a federally regulated bank, Northwest holds loans on balance sheet rather than syndicating or securitizing, providing stable, long-term committed capital
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Sponsor Expertise: The team focuses exclusively on sponsor-backed transactions, understanding PE deal structures, hold periods, and value creation strategies
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Lower Middle Market Focus: By targeting EBITDA $2M-$10M companies, the team operates in a segment where many traditional lenders are too large to compete effectively
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Flexible Structures: Ability to provide term loans, revolvers, and delayed draw facilities allows sponsors to execute both acquisitions and add-on strategies
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Efficient Execution: The team's streamlined underwriting process and delegated authority enables quick turnaround on term sheets and closings
Not a Fit If
Northwest Bank Sponsor Finance is not a fit for:
- Sellers seeking representation on a sale (the firm is a lender, not a sell-side advisor)
- Companies without private equity or institutional sponsor backing
- Transactions below $5M in loan size or below $2M in EBITDA
- Highly leveraged situations that don't meet cash flow coverage requirements
- Start-ups or early-stage companies without established cash flow history
Team
The Sponsor Finance team is led by Dan Delgadillo, Executive Vice President and Managing Director, who brings over 20 years of experience in cash flow lending and commercial banking. He was co-founder and co-head of Byline Sponsor Finance and previously held roles at TCF Capital Funding and Wells Fargo Bank. Bob Joyce, Vice President of Originations, has 13+ years in lower middle market lending with previous roles at Bell Capital Finance and TCF Capital Funding. Matt Shehorn leads underwriting and portfolio management, bringing experience from Fidus Investment Advisors (a BDC with $1B+ AUM), Allied Capital, and Credit Suisse. The broader investment team includes David Thompson, Derek Kuns, Christopher Buehler, and Alex McCullumsmith, each with backgrounds in private credit, investment banking, or private equity.
Geographic Coverage
Northwest Bank is headquartered in Warren, Pennsylvania, with Sponsor Finance offices in Chicago, Illinois and Columbus, Ohio. The team lends to companies throughout the United States, with particular activity in the Midwest, but with national reach across all major markets.