Mezzanine Investment

Capital for Growth-Oriented Companies

$1 million to $5 million in subordinated capital for acquisitions, expansion, ownership transitions, and growth, without giving up control of your company.

company INTRODUCTION

MB Capital, an affiliate of BDC Community Capital, invests mezzanine capital from $1 million to $5 million in companies that require additional capital outside of conventional debt or equity financing channels. Investments are typically used where there are strong prospects for company growth, capital expansion, management transitions, or acquisitions. We work closely with other regional investment groups when the situation calls for a larger structure.

WHY BDC COMMUNITY CAPITAL

More than just

mezzanine capital

Extra Equity Without Loss of Control

Mezzanine financing strengthens the balance sheet while owners retain control of the company.

Flexible Equity Features

Warrants, royalty structures, or a combination, depending on what fits the business.

Fills the Equity Gap

We typically fill an equity gap in a financing effort, alongside bank debt and owner equity

Mission-Aligned Capital

Our mezzanine capital supports minority-owned businesses and companies creating jobs in LMI communities throughout New England.

Who IT IS For

Candidates for mezzanine investment

Typically growth-oriented companies with one or more of these characteristics:

Insufficient collateral for additional bank financing

No readily available equity sources

Growth or acquisitions causing excessive balance sheet leverage

Investment Structure

Subordinated investments with two equity options

Investments are structured as subordinated debt with equity features. The term is usually five years, requires payment of a market rate of interest, and requires regular amortization. The equity component can take two forms:

A combination of warrant and royalty structures may be offered in certain situations.

Appropriate situations for mezzanine investment

Rapid Sales Growth

Leveraged Buyouts

Mergers and acquisitions

Ownership changes

Recapitalizations

Corporate expansions

Refinancing

Frequently asked questions

How much mezzanine capital does BDC Community Capital invest?

$1 million to $5 million per investment, through our affiliate MB Capital.

What is the typical investment term?

Usually five years with regular amortization and a market rate of interest.

Will I have to give up control of my company?

No. Mezzanine investments are structured so owners retain control. The equity feature is delivered through warrants or a royalty structure, not a controlling stake.

Can warrants be repurchased?

Yes. Warrants are typically repurchased at the end of the investment period at fair market value or under a predetermined formula.

What can mezzanine funds be used for?

Acquisitions, capital equipment, real estate purchases, working capital, and other clearly identified business purposes. Funds typically fill an equity gap in a larger financing effort.

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Get the capital you need without giving up the company you built

Subordinated mezzanine financing from $1 million to $5 million.

Get Financing

781-928-1100

Harbor Consulting Group, Inc. is a registered company in the United States, operating under California, USA (Registration No. CA-987654). The company is authorized and regulated by the California Department of Business and Professional Regulation in accordance with the Business Consulting Services Act, License No. BC-123456. All consulting services provided by Harbor Consulting adhere to state and federal regulations, ensuring compliance and ethical business practices.