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Middle Market Mezzanine Fund
South Franklin Street Partners, through a wholly-owned investment affiliate, focuses on providing junior capital to privately-held, middle-market companies. However, the support we provide to entrepreneurs extends beyond funding. Our experience with growing small businesses and our network of contacts can be important resources to the managers of the companies in which we invest.
As members of the board of directors or in direct consultation with management, South Franklin Street Partners’ principals or related advisors can contribute to strategic planning, financing and major operational and marketing challenges of the company.
Types of Business: Our fund targets businesses generating annual revenues from $10 million to $150 million and invests across industries. We do not invest, however, in early stage enterprises, real estate or retail related companies.
Situations: We are looking to assist companies and/or their shareholders in the following situations:
- Buyout of minority or majority shareholders
- Growth or acquisition financing
- Going private transactions
- ESOPs
- Leveraged recapitalizations
Size of Investment: The Fund’s target investment size is $2 million to $10 million and in certain circumstances will provide capital in addition to this amount in conjunction with affiliated investors.
Form of Investment: Each investment is individually structured to meet the needs of the situation. We normally invest in subordinated debt with warrants or preferred stock with an equity participation feature. Other structures will be considered, where appropriate.
Investment Term: Generally, we expect to be an investor in a company for five to seven years.
Important Factors in Evaluation of Investments: The evaluation of an investment opportunity places emphasis on:
- The experience, capability, integrity and energy of management
- Competitive advantages of the product or service
- Trends and other dynamics of the industry or niche served
- Past performance, current value and anticipated performance of the enterprise
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