Debt capital for growing lower-middle-market companies that need additional funding beyond traditional relationship-bank appetite while seeking to preserve ownership.
Growing lower-middle-market companies can have strong operations and established banking relationships while still facing a gap between working-capital capacity and the capital required for expansion, capex or acquisitions. Relationship banks may remain the most efficient source for day-to-day liquidity but can be constrained when the request moves beyond traditional credit appetite.
LMF can structure additional term debt around an incumbent working-capital relationship. The relationship bank continues to provide the RCF, while a new lender supplies longer-term growth capital. Where relevant, creditor priority and security ranking are documented between the financing parties.
Drive business growth without diluting existing shareholder equity.
When the company's credit profile supports the leverage, debt can finance growth without requiring an equity partner or issuing additional shares. This can be attractive where management and existing shareholders believe the expected return on the growth investment exceeds the cost of the incremental debt.
LMF analyses the company's growth plan and debt capacity, then builds the lender universe around the specific assets, cash flows and capital requirements of that plan. LMF has access to different types of specialist capital providers — including sale-and-leaseback (SLB) lenders, mortgage lenders, B-Loan and private-credit lenders, asset-backed lenders and other specialist financing providers — allowing the financing structure to be matched more precisely to each component of the company's growth strategy. LMF then manages lender sourcing, competitive negotiations, due diligence, structuring and execution through closing.
Speak with LMF about capital structure, lender options, refinancing or growth financing requirements.