Mezzanine Fund - FAQs
1. When might mezzanine investments be appropriate?
Mezzanine investments can be used to finance expansion of established profitable businesses although we will consider assisting with turnaround and recovery proposals.
Other situations in which our mezzanine investments work include management buy-outs (where the current management team of a business buys the company from its shareholders) and management buy-ins (where an external management team buys the company). These transactions often arise when the owner of a business wants to retire and/or realise the value in their business, or when a larger group of companies wants to dispose of one of its subsidiaries.
A mezzanine investment is also very appropriate for owner managers who want to take money out of their company, but do not want to give away equity. Working alongside existing or other security backed financiers mezzanine finance can release the capital and value for owner managed businesses. We will also consider rescue and turnaround situations if we believe the proposition is viable.
2. Does the Mezzanine Fund have any investment restrictions?
Companies we invest in must be located in or expanding into Merseyside, or committed to relocating a significant proportion of the business to Merseyside within an agreed timescale following our investment.
3. What other benefits come alongside Mezzanine Funding?
Alongside all our investment comes tailored management support. Our focus is entirely on North West SMEs and we are committed to putting in the time and effort to help them succeed. We will introduce experienced non-executive directors and all of our investee busineses will receive the benefit of our experienced and extensive contact base.
4. Does MSIF funding work alongside other funding providers?
Yes. MSIF funding is often part of a package working alongside other debt or equity providers, and sometimes with grant providers. Equally we can provide all the funding required in a transaction if necessary.
