Special Situations Capital

Learn About Our Situational Capital Loan Solutions

Situational Capital term facilities are typically subordinated debt solutions providing growth capital and special situation financing without the restrictions of a traditional bank. These are non-dilutive options for special situations that do not conform to traditional bank or asset-based lending. Our non-dilutive options are ideal for companies or sponsors seeking to preserve equity.

Loan Amounts Start at $500,000, Rates start at 10%

Structured Cash Flow

Structure: First lien, second lien, unitranche
Underwriting: Fixed charge >1.10, Leverage < 3x (can use proforma EBITDA)
Point of Difference: $1-5mm check size sweet spot is tough to solve for, typically financing non-sponsor backed / family owned businesses that don’t attract other credit funds

Collateral Based – non-conforming ABL (can underwrite AR, inventory, IP, M&E and RE)

Structure: First Lien, split lien
Underwriting: Third party verification of collateral values subject to appropriate advance rates
Point of Difference: Deals that don’t qualify for lower cost pricing or are in need of over-advance / more flexibility than conforming ABL

Guarantor Based

Structure: First lien, second lien, unsecured. Wide range based on business and PFS profile.
Underwriting: PFS assets / net worth
Point of Difference: Guarantor does not qualify for private banking and/or requires speed to clos

Recurring Revenue – primarily SaaS businesses

Structure: First lien, second lien
Underwriting: Recurring revenue metrics, EV, and RML
Point of Difference: Non-dilutive, ability to be second lien, don’t require institutional VC, can scale loan size with company growth

Special Situations – opportunistic note purchases from banks/credit funds