As we hit the halfway point of 2025, it’s time to pause, take stock, and give you an inside look at how things are unfolding here at Celtic Capital: the good, the frustrating, and, yes, even the boring (which is actually good news).
The Year Started Like a Stalled Car. Now We’re Rolling.
The first 45 to 60 days of this year were, to put it bluntly, dead slow. New business just wasn’t moving. But thankfully, the engine finally turned over. Leads started coming in and proposals started going out.
But while the pipeline filled, getting deals to close was another matter. We’re fully equipped to compete with other lenders; what’s harder to compete with is borrower indecision. Many prospective borrowers found themselves stuck: hesitant to move forward, pivoting on growth plans, or simply struggling to commit. When the macro picture feels uncertain, even companies that need capital hesitate to act.
The Silver Lining: Stability in the Portfolio
While new deal flow tested our patience, I’m happy to report that we’ve had very little runoff from our existing portfolio. That’s quite a contrast from last year, where we saw higher-than-normal exits. The companies we’re working with are staying put, not because they’ve solved all their problems, but because many are still stabilizing, working through challenges, or simply not yet back to a place where traditional bank financing is an option.
The upside? Our outstandings have held up nicely, keeping our base strong even while we wait for more new business to hit the books.
Changes on the Team: Growth, Evolution, and Succession
As I mentioned in my January letter, we’ve made some important staffing changes this year.
Our longtime Operations Manager retired, prompting us to restructure responsibilities internally to several talented team members who have stepped up and are thriving in their expanded roles. On the technology front, we’re preparing for the upcoming retirement of our Chief Technology Officer. We’ve made the strategic decision to transition this role to an outsourced model and that shift is already underway, allowing us to stay nimble and tech-forward.
On the sales side, we’re excited to have added Eric Gill as our new SVP of Client Development for the Southeast market. Eric has hit the ground running and with his addition, we now have one of the strongest and most experienced business development teams that we’ve ever had.
Looking Ahead: A Cautious Optimism
As we move into the second half of the year, I expect activity to pick up. Some of the earlier hesitation we saw from borrowers appears to be easing as political uncertainty and tariff noise settle down a bit. Of course, every new headline brings its own twists and turns, but compared to last year’s wild ride, this year feels refreshingly steady (unless that’s my cautious optimism speaking).
The Federal Reserve remains an open question: will they cut rates? Hold steady? Your guess is as good as mine (though I lean toward a modest cut). Meanwhile, trade issues seem to be edging toward some resolution, which should help give borrowers more confidence to move forward.
I’ll Take This Type of “Boring” Any Day
So far this year, no wild swings, no major surprises; just a bit of a slow start moving to steady performance, a healthy portfolio, a strong team, and an expectation for moderate growth through year-end. After the roller coaster of last year, this kind of “boring” sounds pretty appealing. Of course, we’ll be ready for whatever the rest of 2025 throws our way.
As always, I want to sincerely thank you for your continued confidence and trust in Celtic Capital. Your referrals, your support, and your partnership are what keep us going.
Wishing you a successful (and your own kind of “boring”) second half of the year.
Mark Hafner
President & CEO
Celtic Capital Corporation
