Mezzanine Debt
Tregaron's mezzanine debt investments typically range from $2 to $5 million, and in some cases higher as part of a lending syndicate. We lend both directly to companies and as part of private-equity group sponsored transactions. We focus on strong companies with a history of consistent revenue and earnings performance.
Financial criteria
- EBITDA between $1 and $7 million
- Revenue greater than $10 million
- EBITDA margins of 10% or greater
- Limited capital expenditure or working capital investment requirements
- History of stable performance and cash flow generation
Business Criteria
- Strong management team
- Stable or growing markets
- Defensible strategic position
- Proven business models
- Diverse customer base with limited concentration risk
Industry Focus
Tregaron’s principals have experience in a broad range of industries and will evaluate opportunities in most areas. We have particular expertise and focus in:
- Business services
- Information technology and data services
- Health care products and services
- Franchising
- Mature software and technology
- Light manufacturing
- Value-added distribution
We also readily evaluate markets and opportunities that are currently out-of-favor with the investment community, as these frequently represent opportunities for far-sighted managers to create exceptional value.