Private Equity

Private equity is long-term capital that is subordinated in payment priority to both senior debt and mezzanine capital. Private equity allows business owners and managers to focus on investing capital in long-term growth due to the lack of principal and interest payments associated with debt. Our equity investments are usually in the form of preferred stock.

Private equity does not require payment until the equity is redeemed, typically through the sale of the business or a recapitalization. This allows a business to dedicate its short-term cash flow to funding growth and meeting debt service obligations.

We typically invest mezzanine capital in every transaction and if we invest private equity it is in combination with a mezzanine investment. When compared to an "all equity" solution, the benefit of combining mezzanine and equity is it allows a business owner to obtain long term funding while minimizing equity dilution (amount of equity shared with a third party).