In the current investment climate, limited financing options are available to regional private equity funds and mid-market companies.
Financing for mid-market companies is currently restricted by financing size and/or comfort level of traditional lenders with unconventional structure. The Fund will fill a gap in the market, providing subordinated / flexible financing for mid-market companies.
The Fund can provide mezzanine financing for:
Growth Capital
Buyouts / Acquisitions
Refinancing / Recapitalizations
Mezzanine has significant advantages for family and mid-market companies
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Cash Flow Focused |
The Fund bases its investment decision on the profile of the company’s cash flows, not collateral |
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Avoids Dilution of equity |
Offers a compelling alternative to selling an equity stake to a financial investor |
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Flexibility |
Unlike commercial lenders, the Fund can structure its investments in a number of ways to meet the needs of the company |
Mezzanine has significant advantages for private equity sponsors
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Established Financing Instrument |
Key component of private equity deals in Europe and US (€12 billion of mezzanine in 2006 in Europe |
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Boosts Return |
Enhances returns by allowing more aggressive leverage packages |
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Flexibility |
Provides flexibility in structuring transactions by closely tracking actual cash flows of the business
Added flexibility in post-acquisition management of portfolio company (e.g. executing add-on acquisitions) |
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Speed of Execution |
Ability to complete funding quickly enhances private equity sponsors competitiveness in bidding and closing time-sensitive transactions |
