Mezzanine Financing

Mezzanine Financing

SunState Consulting invests in subordinated debt securities of small and midsize businesses including micro cap companies. The fund pursues an investment strategy based upon in-depth evaluations of the credit fundamentals of issuers with well established products or services, defensible market niches, reasonably predictable cash flows, experienced management teams and attractive growth opportunities.
SunState Consulting (SSC) is prepared to fund acquisitions by small and medium sized companies. This includes single, strategic acquisitions as well as “Roll-up Strategies” that may includes a series of acquisitions. SSC teams up with companies to help structure, bid, negotiate, finance, and close acquisitions on the best possible terms for a company.

Capital for Investment:
SSC has in excess of $200 million of committed capital for mezzanine investments.

Industry Focus:
Manufacturing, distribution and service companies with sustainable competitive advantages in niche markets, not subject to rapid technological change or wide cyclical swings in volume and profit.

Investment Criteria:
Annual revenues typically range from $20 to $200 million
Stable and predictable operating income (EBITDA)
Product, service or distribution channels with distinctive competitive advantages
Operated by experienced management teams with meaningful ownership positions
Industries with multiple participants undergoing consolidation

Preferred Size of Investment:
$1 million to $20 million but will participate as lead or co-investor in larger transactions

Coupon or Dividend Rate:
12% – 14% fixed, interest only.

Type of Securities:
Subordinated debentures with warrants

Equity Features:
Minority interest, never voting control

Board of Director Participation:
Observation rights, or ability to appoint board member(s)

Type of Mezzanine Transactions:
Expansion Financings (internal growth and/or acquisitions)
Recapitalizations and Divestitures
Management/Leverage Buyouts

If you are interesting in obtaining funding for your business, pleaseĀ contact us to discuss your needs orĀ click here to apply online.

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