Covenant Engineering: Designing Elastic Governors for the Capital Stack Introduction In Article 1, we established the Velocity Pitch—the shift from selling “growth” to proving capital rotation. But securing capital is only half the equation. The second half is ensuring the structure you’ve built can survive the friction of the real world. Most middle-market debt is...
The Velocity Pitch: Why Lenders Now Underwrite Speed, Not Stories The middle market lending environment has quietly shifted. What was once a relationship-driven model is now governed by something closer to physics. Lenders are no longer underwriting just EBITDA and leverage. They are underwriting how efficiently capital moves through your business. In a higher-for-longer rate...
Lower Middle Market Outlook: The Repricing of Velocity The lower middle market rarely flashes warning lights all at once. Instead, it sends quiet, compounding signals through credit conditions, lender behavior, and sector-level stress. Recent indicators suggest that the broader economy shows resilience, yet conditions for lower middle market ($5M–$50M revenue) operators are shifting in a...
Capital Source Announces Industries Served – January 2026 Impact Statement In January 2026, Capital Source continued its role as an active private credit partner to small and lower-middle market businesses across the U.S. and Canada. During the month, Capital Source funded 17 transactions totaling $7.4 million, supporting operators across a wide range of industries, deal...
Scenario Theater: The Mechanics of Survival In Part 1 of this series, we introduced the World Engine — the shifting load paths of the global economy — and why macro volatility only destroys companies with internal shear points. This article stands on its own. It builds directly on that foundation. In a high-friction environment, survival...
