Investment Focus

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Majority Recaps

Attractive Majority Recap candidates include:

  • Family businesses that need a change of control partner for estate planning or succession management
  • Owner-operators or family businesses that need a control partner to take the company to the next level
  • Qualified and capable independent sponsors who add value, but need a financial partner to execute
Example Project
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Minority Recaps

Family businesses or owner-operators who need an equity partner, but are not ready to sell control

Example Project
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Growth Capital

Companies that are in need of growth capital beyond what is available from traditional financing sources, as well as the experience of a knowledgeable equity partner

Example Project
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Management Buyouts and Partner Buyouts

  • Management Buyouts (MBOs): Existing operators and / or members of management seeking to buyout the majority owner
  • Partner Buyouts: Minority owners seeking liquidity or a full exit from the business
  • Estate Planning: Liquidity for ownership succession transfers​
Example Project

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.