Mezzanine Debt

 

Babson Capital has extensive experience in mezzanine and private equity financing, having been active in providing financing solutions for a wide-variety of partners since the 1960s.

Our transactions are focused on leveraged buy-outs, corporate acquisitions and recapitalizations, with sizes ranging from $50 - $300 million. We focus on middle-market companies. Our typical investment commitment ranges from $10 - $40 million in mezzanine deals and $3 - $15 million in private equity investments.

We look to form close partnerships with experienced, like-minded sponsors.

  • Through many years of activity, we have established long-standing relationships with a significant number of experienced, like-minded private equity firms
  • We strive to be a "user friendly" investor, offering:
  • Quick responses to proposals
  • Efficient due diligence
  • A streamlined approval process
  • Support during the investment period, and
  • Participation in future financings

When we consider a potential investment, we employ a rigorous, bottom-up evaluation process. Key factors assessed include:

  • Quality of a company’s sponsor/shareholder group
  • Quality and depth of company management:
  • Strength of business model
  • Drivers of past and future product or service demand
  • Market conditions and a company’s competitive position
  • Customer, supplier and competitors perceptions of the company’s products, services and management
  • Historical and projected financial statements
  • Company’s need for additional capital
  • Potential exit opportunities

We pursue opportunities across broad industries, with particular focus on:

  • Manufacturing
  • Business Services
  • Distribution
  • Consumer Products & Services
  • Food Products & Services
  • Packaging
  • Healthcare