Investment Focus

Acquisitions

Control Equity transactions are used to facilitate majority recapitalizations, change of control, buyouts, MBOs, corporate carve-outs, growth capital, and other liquidity events. 

Minority Equity and Mezzanine

Minority Equity structures include preferred equity, convertible equity, common equity and warrants.

Mezzanine Capital is a hybrid of junior debt and minority equity, typically subordinate to bank debt. Companies commonly seeks mezzanine capital to fill a funding gap in excess of what senior lenders will typically provide for acquisition financing, growth capital, recapitalizations, etc. 

AEROSPACE ENGINEERING

TYPE: Acquisition Financing

STRUCTURE: Minority Equity and Mezzanine Capital

DATE: 2016

LOCATION: Seattle, WA

$10,000,000

 

SITUATION

An Oklahoma-based independent sponsor was seeking capital to effectuate the acquisition of an aerospace engineering firm focused on the development, certification and supply of certified performance improvement systems for commercial and general aviation aircraft worldwide.  The independent sponsor brought significant value through their extensive aerospace experience, a solid operational track record and meaningful skin in the game in the form of cash equity invested.

 

Congruent structured a $10,000,000 investment comprising a second lien term loan and an equity co-investment, providing significant flexibility in order to reduce the debt service burden on the business and instead allow for future excess cash flow to be reinvested for growth.  Congruent’s prior expertise across multiple aerospace transactions was value-add throughout the underwriting process.