Congruent Investment Partners is creative and nimble in its investment approach. Whether providing growth capital to asset-light operating companies, acquisition financing for leveraged buyouts, third stage fundings for venture capital raises or financing for the purchase of real estate assets, Congruent has the flexibility in its fund structures to provide thoughtful solutions throughout the capital structure. Every deal is completely unique, which allows the team to craft solutions tailored to each specific investment in lieu of a standardized template financing structure.

Transaction Type

Acquisition Financing

Attractive acquisition financing candidates include:

  • Companies that are making an add-on acquisition and need more capital than traditional banks will provide
  • Private equity sponsors seeking unitranche or mezzanine debt for an acquisition opportunity
  • Fundless sponsors with a compelling acquisition opportunity

Growth Capital

Companies with a growth opportunity that prefer raising non-dilutive growth capital in the form of debt rather than heavily dilutive equity.

Refinancing

Companies facing a short-term debt maturity that are either unable to extend with an existing lender or are looking for a fresh start with a new capital provider.

Recapitalization

Typical recapitalizations involve owners taking money off the table to realize some of the value they’ve created or seeking to consolidate ownership by buying out minority shareholders. A leveraged recapitalization can facilitate this transaction without the need for current ownership to give up control in an outright sale of the business.

Liquidity Infusion: Restructuring, Turnaround Capital and DIP Financing

Good companies that have come under financial stress and need a capital injection to turnaround performance or to provide liquidity to stabilize the business.

Other Transactions

Royalty Interests, Portfolio Purchases, Late Stage Venture Capital, Bridge Loans, etc.

Investment Securities

Secured Loan

Typical loan structures include first lien and second lien loans secured by the cashflows and/or assets of the business.

Unitranche Debt

One-stop unitranche debt financing replaces a more traditional senior debt / mezzanine debt structure. Unitranche debt has significant advantages including a streamlined underwriting process, simplified capital structure and a single unitranche credit agreement.

Mezzanine Debt

Mezzanine debt is a junior debt security, typically subordinate to senior secured loans. Companies commonly seek mezzanine debt financing to fill a funding gap in excess of what their existing senior lender will provide for acquisition financing, growth capital, recapitalization, etc.

Equity

Equity structures include preferred equity, common equity and warrants. In select transactions we will pursue equity co-invest opportunities.

Industry Focus

Investment Parameters

  • Company Size: EBITDA of $2 million - $20 million+
  • Investment Size: $5 million - $40 million+
  • Security: First Lien, Second Lien, Unitranche, Mezzanine, Equity
  • Interest: Cash and Non-cash (PIK) interest
  • Duration: 3 – 5 year maturity
  • Amortization: Flexible
  • Warrants: Varies by situation
  • Location: North America