Insights from CNBC’s Interview with PFG’s Co-Founder & CEO Andrew Kahn
With traditional bank lending retreating and equity markets tightening, a capital gap is widening, especially for growth-stage tech companies. In a recent interview with CNBC, Andrew Kahn, Co-Founder and CEO of Partners for Growth (PFG), unpacked what the gap means for innovation economies around the world and how growth debt is stepping in where banks and venture capital are pulling back.
Here are four takeaways from the conversation:
1. Bank lending to fast-growing tech companies remains difficult, particularly outside of the US.
Despite strong demand for capital, supply has tightened. Andrew noted that most of the companies PFG finances, typically those with $10 million to $100 million in revenue, are not generating free cash flow because they are reinvesting heavily in sales, marketing, and R&D to fuel growth. As a result, they are often a poor fit for traditional bank lending. “Banks are conservative, especially outside the U.S.,” he remarked. “If a company doesn’t have multiple years of profitability, it simply isn’t getting debt from a bank.”
2. Lending to fast-growing tech companies requires an understanding of risk and ability to provide customization.
PFG provides specialty lending solutions for tech and fintech companies, a notably different strategy from traditional cash flow lending. Andrew explained that underwriting in this segment requires focusing on metrics such as recurring revenue, margins, unit economics, as well as financing less traditional assets in the fintech sector, rather than relying on historical earnings.
“Banks are market-share players. They win by offering standardized products at scale. That model makes them efficient and low-cost—but it also makes them structurally incapable of being truly custom or creative.”
3. When equity is expensive, particularly in times of tight liquidity, debt looks cheap.
Despite concerns about rising interest rates, cost is not the main issue for most borrowers. The key challenge is being able to provide the capital they need in the right structure.
4. AI is driving spend, but the real constraint is capital supply.
The AI build-out is driving a global wave of innovation, and with it comes a growing need for capital. Unlike tech giants with access to public markets, growth-stage private companies often face a stark choice: dilute ownership or risk stagnation. That is where PFG’s strategy comes into play. “There is always demand for capital,” Andrew said, “What changes is the supply. Right now, we are seeing real scarcity, especially outside the U.S.”
At PFG, we don’t chase market share. We partner with companies at critical inflection points in their growth, delivering structured credit when it matters most.
If you’re working on something built to last and need capital to scale without giving up control, let’s talk.
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