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FOCUS Mezzanine / Financial Terms for MMMD
FOCUS Funds
FOCUS Mezzanine
Seraphim Capital
Financial Terms for Middle Market Mezzanine Debt

FOCUS Mezzanine will invest $2 to $10 million in a portfolio company. These investments may be funded with a combination of its own capital and that of its co-investors.

FOCUS Mezzanine’s investment will most often be in the form of a secured loan (subordinate to an agreed upon amount of senior debt) which will bear interest at the rate of 12 to 15 percent per annum plus warrants in the ownership of the portfolio company plus origination fees such that the total cost of capital to the portfolio company equals 25 percent compounded per annum.

FOCUS Mezzanine's out-of-pocket costs incurred in connection with an investment (legal, due diligence, etc.) will be reimbursed by the portfolio company.

 

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