Private Debt / Structured Equity

Why we provide private debt and make structured equity investments in private companies

  • Less than 2% of middle-market companies are publicly traded.

  • Public markets are more volatile than private markets.

  • Larger value creation and share growth accrues to investors as companies stay private longer.

Investment criteria for deploying our capital

  • Market leaders with competitive advantages
  • High-quality middle-market businesses
  • Consistent cash flows
  • High EBITDA margins
  • Ability to generate free cash flow sufficient to service pro forma debt structure
  • Growing industries
  • Durable brands
  • Businesses that are insulated from economic downturns
  • Preference toward proprietary products or services
  • Management teams with vested interest in success of the business
  • Solid financial profiles
  • Revenues of between $10 and $100mm
  • $1.5 to $10mm of EBITDA
  • Investment size: $250K to $5mm
  • Targeting the Southeast and Mid-Atlantic United States

Preferred Investment Structure: Subordinated debt and non-control equity

Our Investments Support

  • Growth opportunities

  • Acquisitions

  • Recapitalizations

  • Facilitation of ownership transfers

  • Removal of fatigued lenders

Why use a Metrolina Capital Solution

  • Extensive and deep network of operating resources

  • Long track record over various economic cycles

  • Active team with significant investment experience in lower middle market

PRIVATE DEBT & STRUCTURED EQUITY CASE STUDIES

CASE STUDY 1

Client Type:

Commercial Real Estate Developer

Investment Type:

Mezzanine credit to expand bandwidth

Multiple fundings over the past 6-7 year exceeding $30mm in aggregate.

CASE STUDY 2

Client Type:

Manufactured Housing

Investment Type:

Seed capital for a new business line

Provided $6mm in two tranches to fund expansion of a new business line. The company went public and we are now the second largest shareholder.

CASE STUDY 3

Client Type:

Tech Company

Investment Type:

Growth capital for business expansion

Provided $3mm to fund expansion, onboard significant new business, and transition from an enterprise to SaaS model. Capital also allowed the company to add 38+/- new employees.

CASE STUDY 4

Client Type:

Transportation

Investment Type:

Bridge loan to logistics company

Provided $1mm of capital needed for expansion, helped convert to a captive insurance solution, and cured a default under a credit facility with a prior lender.

CASE STUDY 5

Client Type:

Regional Fast Casual Restaurant Chain

Investment Type:

Real Estate Secured Credit Facility

Provided $750K expansion on-boarding capital to open new locations.

CASE STUDY 6

Client Type:

Plastics Manufacturing

Investment Type:

Senior Secured Credit Facility

Helped cure a default under a credit facility with a prior lender.

Metrolina Capital uses a business model that is proactive rather than reactive when focusing on our borrowers and partners. We are always interested in considering any available opportunities and welcome you to contact us.