Capital Solutions

 

Custom-tailored Transactions

 

At Caltius Mezzanine, we approach each investment with open minds, listening to management and thoughtfully assessing the company's unique needs. General parameters for our transactions are:

Investment Size:

$7 million to $50 million

Security Type:

Subordinated notes with common and/or preferred stock

Interest Rate:

10% - 15% per annum; fixed rate, paid quarterly

Maturity:

3 to 8 years

Amortization:

None; 100% of principal due at maturity

Equity Features:

Minority interest; board observation rights



In conjunction with subordinated debt investments, we also provide minority equity co-investments, acquisition facilities and senior bridge financings.

 

 

Investment Guidelines

 

We are experienced investors in a wide range of industries and business types. Typically, the companies we invest in have:

 

  • Annual revenue of $25 to $250 million
  • Positive cash flow
  • Experienced management teams with meaningful ownership positions
  • Favorable industry dynamics
  • Strong and defensible market positions

 

Post-closing

 

After a transaction has closed, we strive to optimize the company's performance by:

 

  • Consulting on capital structures and financial restructuring issues
  • Advising on the timing and method of asset and subsidiary divestitures
  • Introducing add-on acquisition opportunities
  • Providing or arranging for follow-on financings
  • Advising on exit strategies

 

Our Fund

 

Caltius Mezzanine was founded in 1997 by its current management team. Our limited partners include a diverse list of U.S. and European-based public and corporate pension funds, funds-of-funds, insurance companies, commercial banks, foundations, endowments and high net worth individuals. We are proud to have many executives of Caltius' current and former portfolio companies as investors in our fund.

 

"We initially approached Caltius about a potential investment because of their reputation in the market as a responsive and experienced lender who can provide surety of close. Their positive reputation was confirmed during the diligence process. They worked quickly to understand our business, were flexible with us during the negotiation process and closed in a timely manner under the terms they originally proposed. Since closing, Caltius has continued their collaborative work with us. When an acquisition opportunity arose, they increased their original commitment and helped us to close quickly on an attractive acquisition. Caltius has demonstrated that they are not only a lender, but also a partner, to business owners."


Steve Jones

co-CEO of Univeral Services of America