Investment Strategy

Praesidian Capital provides mezzanine debt to established, historically profitable middle-market companies with revenues between $25-250 million and operating cash flow between $5-25 million. We pride ourselves on being a responsive and decisive organization and we understand the need for management and financial sponsors to secure timely investment commitments.

We prefer to commit between $4-15 million of capital with a five to seven year time horizon in either sponsored and non-sponsored transactions. Investments are focused on successful businesses in the manufacturing, distribution and service sectors, although our approach is not driven by an industry focus. We refrain from opportunities in certain industries, such as oil & gas exploration, financial services and real estate. We do not invest in recent start-up companies, companies susceptible to technological obsolescence, or operational turnarounds, and we do not participate in hostile bids. We provide mezzanine capital, typically structured with a current yield and an equity participation feature usually in the form of warrants, or Payment in Kind interest, to finance the following needs:

Growth and acquisition financings
We invest in companies to help fund continued growth. These investments are typically used for capital investments such as product line extensions and new facilities, as well as for pursuing strategic initiatives including acquiring complimentary businesses or expanding geographic coverage.

Management and leveraged buyouts
We partner with experienced equity sponsors and management teams to capitalize management or leveraged buyout investment opportunities.

Recapitalization and refinancings
We provide capital to facilitate shareholder liquidity or succession and estate planning. Additionally, we provide capital when companies prefer to negotiate a direct mezzanine investment as a discreet, quick and less complicated alternative to a public sale of equity or debt.

Restructurings
We provide capital to well run operating companies struggling with challenging balance sheets. We believe our long term perspective, and patient capital support can aid solid management teams coping with short term challenges.