Strategic Capital Solutions
Tailored to fit your needsOur Typical Investment Structures
We offer a wide range of capital solutions including three primary investment programs customized to fit your needs.
1
Mezzanine Loan
Loan Size: $500,000 to $3,000,000
Leverage: Up to 80% LTC / LTV
Rate: 12 – 16%, typically 8 – 10% current pay with remaining at maturity
Term: Range from 1 to 4 years
Prepayment: Flexible / Yield Maintenance
Guarantee: Flexible – Recourse or Non-recourse to key principals with standard carveouts
Fees: Origination & Exit Fees determined on deal-by-deal basis, typically 2-4%
Asset Class: Income producing commercial loans to fund acquisitions, construction projects, real estate, equipment, inventory, or working capital needed for growth.
2
Private Debt
Loan Size: $1 – $3 Million
Leverage: Up to 75% LTV / 80% LTC
Rate: Fixed Rate starting at 8%; (Floating Rates also available)
Term: Range from 2 to 4 years
Prepayment: Flexible / Yield Maintenance. Target lockout of 9 – 12 months
Guarantee: Flexible – Recourse or Non-recourse to key principals with standard carveouts
Fees: Origination & Exit Fees determined on deal-by-deal basis, typically 2 – 4%
Asset Class: Income producing commercial loans to fund acquisitions, construction projects, real estate, equipment, inventory, or working capital needed for growth.
3
Preferred Equity
Size: $1 – $5 Million
Leverage: Up to 50% Equity
Pricing: 15 – 20% IRR, with a minimum multiple
Term: Range from 2 to 4 years
Fees: Typically, 2%
Asset Class: Income producing to fund acquisitions, construction projects, real estate, equipment, inventory, or working capital needed for growth.
Background on Mezzanine Debt
Senior Debt
In today’s environment, traditional senior debt can be very challenging to obtain requiring significant collateral including personal guarantees, likely interest rates in the mid-single digits and more restrictive covenants.
Likely Interest rates in the mid-single digits but will include more restrictive covenants.
No Dilution
Mezzanine Debt
Mezzanine Financing is often the best alternative to senior debt and equity. Mezzanine debt is typically more flexible regarding collateral, interest rates in the low to mid-teens, and usually with less dilutive forms of equity such as warrants.
A capital solution that avoids given up large portions of equity.
Limited Dilution
Equity
When a company doesn’t have the hard assets or necessary collateral for traditional bank debt, they will often turn to equity.
Equity financing may provide the most flexible liquidity in the short-term but in the long-term may be the most expensive.
Highly Dilutive
