PRIVATE CAPITAL MARKETPLACE – FUELING YOUR BUSINESS
As a fire needs oxygen, growing companies need capital. If your company is striving to reach the so-called “next level,” capital from outside investors may be just what you need – especially when commercial banking sources are insufficient or too personally burdensome. Blue River operates in the private capital marketplace on a daily basis and may be able to offer highly suitable corporate finance solutions unique to your circumstances. Please contact us if any of the following are true regarding your growth capital requirements:
- You are unwilling to provide guarantees the Banks want
- Asset-based lending will not deliver the amounts of capital necessary to fully fund exiting growth opportunities;
- The company is an established middle market business with a successful growth record and not a pre-revenue startup;
- While capital is needed to fuel growth, your personal financial risk tolerance is declining;
- You are unwilling to surrender a controlling ownership position in the company;
- The capital required is between $7 million and $100 million; and/or
- The growth opportunity is compelling, definable, and clearly achievable with the infusion of capital.
The private capital marketplace may provide a perfect solution to match your growth aspirations. Blue River can help you design a capital structure that delivers growth opportunities while reducing shareholders’ personal risks. If capital is the only thing holding you back from executing your growth strategy, we should talk.
Non-bank capital is provided in various forms, such as:
- Unsecured debt – When growth projects require capital beyond the collateral limitations of existing receivables, inventories, and fixed assets, investors from the private capital marketplace are often willing to support growing companies with a compelling story and solid financial projections.
- Hybrid securities like preferred stock – Cash inflows from growth initiatives can sometimes be difficult to predict with accuracy, which makes fixed repayment schedules undesirable. When flexibility is needed, preferred stock can be a mechanism to align repayment schedules with eventual investment cash inflows. Preferred stock dividends do accrue and take priority over payments to common stockholders.
- Minority equity – Using equity in exchange for growth capital can be highly appropriate in a variety of circumstances like purchasing retiring shareholders’ equity, acquiring another business, or funding other opportunities outside the scope of normal business activities.
- Growth capital packages – Some capital providers (known as uni-tranche providers) like to deliver packaged funding solutions that include secured debt, unsecured debt, hybrid securities, and common stock.