Alliance Strata Management’s mezzanine debt finance unit will help companies with subordinated debt, typically in the region of $2 million to $20 million, to assist with acquisitions, expansions, management buyouts or with recapitalizations. We assist those companies that have highly respected management teams, potential for growth, adequate cash flow and possess a feasible exit strategy.
Alliance Strata Management’s mezzanine debt financing unit provides financing to private firms in the middle market, predominantly in the technology, environmental and health care sectors. We look for investment opportunities where we judge the loss of principal to be small and there is a high anticipation of equity appreciation. Alliance Strata Management looks for healthy long term returns comparable to those of private equity and venture capital transactions.
Typical Investment Characteristics:
- Transaction size between $2 million and $20 million
- Coupon rate between 12.5% and 15%, paid monthly
- Five year investment term
- Options to purchase equity at nominal prices