Mezzanine Partners analyses the investment merits of each potential investment opportunity whilst simultaneously carrying-on a process of consultation with all the relevant stakeholders to ensure that the financial instrument used is suitably tailored to meet the specific requirements of the relevant transaction.
In identifying suitable investment opportunities, Mezzanine Partners looks for investees that exhibit a preponderance of the following features:
- Are market-leaders in their chosen areas of operation, and from a size perspective typically mid- or large cap companies;
- Have a track-record of stable, non-cyclical financial performance, incorporating the following elements:
- Strong earnings and revenue growth;
- Sustainable margins;
- Unique or proprietary products, services or processes which provide the business with a sustainable competitive advantage in clearly defined market segments;
- Generate sustainable and sufficient free cash flow after working and fixed capital expenditures;
- Boast experienced and superior management teams;
- Are backed by committed and experienced equity sponsors;
- Have a management team with a significant equity interest in the business.
Mezzanine Partners’ commitment to managing a diversified investment portfolio means that the investment opportunities which it targets could operate across a broad spectrum of industries.
Mezzanine Partners will typically not invest in:
- Turnaround situations;
- Start-up or early stage investment opportunities;
- Real estate transactions;
- Opportunities considered too small within the context of the strategic objectives of the funds under Mezzanine Partners’ management.