O2 Sponsor Finance
O2 Sponsor Finance is a division of Old Second National Bank that originates senior secured credit facilities for private equity-backed lower middle market companies, supporting sponsor-led recapitalizations, acquisitions, and growth investments across multiple U.S. industries.
- Company typePrivate
- Founded1871
- HeadquartersChicago, United States
- Headcount—
- GTM typeB2B
- OfferingServices
What O2 Sponsor Finance does
O2 Sponsor Finance is a lower middle market senior cash flow lending division of Old Second National Bank, founded in 2022 and headquartered in Aurora, Illinois. It originates senior secured credit facilities for private equity-backed companies, primarily supporting recapitalizations, add-on acquisitions, and growth investments for small to mid-sized portfolio companies. The division does not operate as a standalone technology platform; its infrastructure is embedded within Old Second's broader commercial banking stack, which includes standard loan servicing systems, treasury management, the O2 Digital Banking and Corporate O2 digital channels, and a dedicated borrower portal.
O2 Sponsor Finance generates revenue through interest income on its credit facilities, with spreads between its borrowing costs and lending rates reflecting deal-specific negotiated pricing rather than publicly disclosed terms. Its go-to-market is relationship-driven and sales-led: the division works directly with private equity sponsors, has co-lent with partners such as Brookside Capital Partners, Northstar Capital, and XLCS Partners, and has supported sponsor-backed platforms across environmental services (Boston Green), food manufacturing (Gilman Cheese, $30M facility), garage door services (Total Garage Store), tree care (Soundcore TreeServe), and sealcoating (A&R Sealcoating). The division benefits from the parent's 150+ year operating history, 54-branch Chicagoland franchise, and 2025 Evergreen Bank Group integration, which expanded its deposit and funding base.
O2 Sponsor Finance firmographics
Firmographics- Name
- O2 Sponsor Finance
- Legal name
- Old Second National Bank
- Website
- https://oldsecond.com
- Company type
- Private
- Founded year
- 1871
- Operating status
- Operating
- Short description
- O2 Sponsor Finance is a division of Old Second National Bank that originates senior secured credit facilities for private equity-backed lower middle market companies, supporting sponsor-led recapitalizations, acquisitions, and growth investments across multiple U.S. industries.
- Ownership category
- akta.pro rank
O2 Sponsor Finance industry classification
Industry- Product category
- Sponsor Finance / Commercial Lending
- NAICS
- Commercial Banking (522110), Commercial Banking (52211)
- SIC
- Miscellaneous Business Credit Institution (6159), National Commercial Banks (6021)
- akta.pro primary industry
- Large-Cap / Sponsor Finance Direct Lending (FSANADAJ)
Keywords
Where O2 Sponsor Finance is headquartered
LocationHeadquarters
- HQ city
- Chicago
- HQ country
- United States
- HQ region
- North America
Offices1 record
Markets served
O2 Sponsor Finance business model
Business model- GTM type
- B2B
- Offering type
- Services
- Cost components
- Personnel, Operations, Technology or R&D, Marketing or Sales, Infrastructure
Revenue model
- Interest Income from Credit Facilities: O2 Sponsor Finance generates revenue through interest income on senior secured credit facilities provided to private equity-backed companies. These facilities support recapitalizations and acquisitions, with revenue derived from the spread between borrowing costs and lending rates.
Pricing tiers
| Model | Billing | Price |
|---|---|---|
| Other | Other | Custom senior secured credit facilities |
Go-to-market motion2 records
Distribution channels1 record
Marketing channels3 records
O2 Sponsor Finance product offering
Product offeringCore offering
O2 Sponsor Finance is a lower middle market senior cash flow lending firm operating as a division of Old Second National Bank. It provides senior secured credit facilities to private equity-backed companies to support recapitalizations, acquisitions, and growth initiatives. Deal sizes are negotiated on a transaction basis (e.g., a $30M facility for Gilman Cheese) and structures are tailored to the sponsor and portfolio company's needs.
Product overview
O2 Sponsor Finance is a division of Old Second National Bank that offers senior secured credit facilities to private equity firms and their portfolio companies. The division provides financing to support recapitalizations, acquisitions, and growth initiatives, as evidenced by recent transactions with Fort Point Capital (Boston Green), Borgman Capital (Gilman Cheese), and U.S. Dock & Door (Total Garage Store). The product operates as a specialized lending unit within Old Second's Commercial Banking division, offering tailored credit solutions for sponsored deals.
Differentiator
Problem solved
Functional benefit
Brands
- O2 Digital Banking: Online and mobile banking platform for personal banking customers
- Corporate O2
- FreedomRoad Financial
- Performance Finance
Products and services
- Senior Secured Credit Facilities Custom-structured senior secured credit facilities provided to private equity-backed lower middle market companies to fund recapitalizations, acquisitions, and growth initiatives. Facility sizes are negotiated per deal (e.g., $30M for Gilman Cheese). Target customers are PE sponsors and their portfolio companies.
Quantifiable outcome
- Over 60 acquisitions completed by Fort Point Capital partners (Boston Green investment)
Companies that use O2 Sponsor Finance
Customer profileNamed customers4 records
Segments3 records
Ideal customer profiles1 record
O2 Sponsor Finance technology and API
TechnologyTechnology focussed No
API detail
- Has API
- No
- API docs
- API detail
Core technology
AI maturity
App detail
O2 Sponsor Finance partnerships and signals
Strategic signalScale indicators3 records
Recent moves6 records
Expansion highlights6 records
O2 Sponsor Finance competitors and assessment
Company assessmentDirect peers
- Golub Capital: One of the largest lower middle market direct lenders in the U.S., focused on senior secured and unitranche loans to PE-backed companies — directly comparable to O2 Sponsor Finance's deal size and sponsor-backed mandate.
- Antares Capital: Major middle-market sponsor finance direct lender providing senior secured and unitranche credit facilities to PE-sponsored companies, closely mirroring O2's lower middle market cash flow lending model.
- Citizens Capital Markets: Bank-affiliated sponsor finance and middle market lending platform within Citizens Financial Group, comparable to O2 Sponsor Finance as a bank division offering sponsor-backed senior credit facilities.
- Brookside Capital Partners: Lower middle market direct lender that co-financed Boston Green alongside O2 Sponsor Finance — directly comparable lender focused on sponsor-backed companies of similar size.
- M&T Bank Sponsor Finance: M&T Bank operates a sponsor finance / leveraged finance business targeting PE-backed middle market borrowers — a direct bank-affiliated peer to O2's sponsor finance mandate.
- NXT Capital: Middle-market direct lender (now part of Oaktree) providing senior secured cash flow loans to PE-backed companies — directly comparable in deal size and sponsor relationship orientation.
- Northstar Capital: Middle-market direct lender and co-financing partner with O2 on the Total Garage transaction; comparable in deal size and sponsor-backed focus, representing a true peer that has appeared alongside O2 on deals.
Broad incumbents
- Blue Owl Capital (Owl Rock Credit): Large alternative asset manager with a significant direct lending franchise originated via the Owl Rock platform — a broad incumbent in the same sponsor-backed cash flow lending market.
- Ares Capital Corporation: Largest BDC and one of the most active middle-market direct lenders, broadly comparable as a sponsor finance provider but operating at materially larger scale and through a public BDC structure.
- Fifth Third Bank Specialty Finance: Midwest regional bank with a specialty finance / sponsor lending platform serving PE-backed middle market borrowers — broader incumbent peer operating at larger scale in the same geography.
Market position
Strengths4 records
Weaknesses4 records
Competitive moat4 records
Key risks5 records
Key highlights5 records
Customer concentration
O2 Sponsor Finance financial estimates
Financial estimateRevenue estimate
Valuation estimate
O2 Sponsor Finance leadership team
Management profileNumber of profiles
O2 Sponsor Finance subsidiaries and ownership
Company hierarchySubsidiaries5 records
O2 Sponsor Finance funding detail
Funding detailFunding overview
Funding rounds
Investors
Funding detail is available on the Subscription and Enterprise plan.Contact sales →
O2 Sponsor Finance M&A and investment
M&A and investmentM&A1 record
Investments1 record
M&A and investment is available on the Subscription and Enterprise plan.Contact sales →
Frequently asked questions about O2 Sponsor Finance
What does O2 Sponsor Finance do?
O2 Sponsor Finance is a lower middle market senior cash flow lending firm operating as a division of Old Second National Bank. It provides senior secured credit facilities to private equity-backed companies to support recapitalizations, acquisitions, and growth initiatives. Deal sizes are negotiated on a transaction basis (e.g., a $30M facility for Gilman Cheese) and structures are tailored to the sponsor and portfolio company's needs.
Is O2 Sponsor Finance a public or private company?
O2 Sponsor Finance is a private company. It is classified as corporate owned and is currently operating.
When was O2 Sponsor Finance founded?
O2 Sponsor Finance was founded in 1871.
Where is O2 Sponsor Finance based?
O2 Sponsor Finance is headquartered in Chicago, United States, in the North America region.
How does O2 Sponsor Finance make money?
One revenue line is on record: interest Income from Credit Facilities.
Who are O2 Sponsor Finance's main competitors?
Direct peers on record are Golub Capital, Antares Capital, Citizens Capital Markets, Brookside Capital Partners, M&T Bank Sponsor Finance, NXT Capital and Northstar Capital. Broad incumbents are Blue Owl Capital (Owl Rock Credit), Ares Capital Corporation and Fifth Third Bank Specialty Finance.
Does O2 Sponsor Finance have an API?
No public API is recorded for O2 Sponsor Finance.
What industry is O2 Sponsor Finance in?
O2 Sponsor Finance's product category is Sponsor Finance / Commercial Lending. Its primary akta.pro industry code is FSANADAJ, Large-Cap / Sponsor Finance Direct Lending. Its NAICS code is 522110 and its SIC code is 6159.