CIT Group expanded its investment management and advisory capabilities to provide increased capacity and flexibility to finance private equity sponsor-owned middle market companies across a diverse range of industry sectors.

Under the new arrangement, CIT Asset Management, CIT’s registered investment advisor unit, will offer expanded cash flow-based revolving and term loan options to qualified borrowers though a managed financing vehicle funded by an A-rated insurance company.

The expansion of lending capabilities enlarges the market size and product offering to address a wider range of client financing needs.

“This new funding mechanism leverages CIT’s noted expertise in loan origination, underwriting, capital markets, treasury management and portfolio management,” said Jeff Kilrea, managing director and group head for CIT’s Sponsor Finance business.

“Through our strategic partnership, we are able to offer our clients more cash-flow lending options with attractive terms,” said Kilrea, who will lead CIT Asset Management’s supervision of the new financing vehicle.

“This represents another stride forward in CIT’s asset management strategy and also serves as the latest example of how we are continuing to create innovative financing approaches that help small and medium-sized market businesses grow and succeed,” he added.

Barclays Capital served as CIT’s financial advisor for this arrangement.

CIT Asset Management, part of the company’s Commercial Finance division, delivers a broad range of innovative, cost-effective solutions to medium-sized businesses across a variety of industry sectors.