FOCUS is pleased to announce its first fund, FOCUS Mezzanine, which will be managed by Prudent Management, LLC, a seasoned mezzanine fund management firm based in Washington, DC. Transactions being considered for funding under the Fund are subject to the sole discretion, authority and approval of Prudent Management, LLC.

FOCUS Mezzanine will make subordinated debt and preferred equity investments in successful, later-stage middle market operating businesses. By providing mezzanine debt between $2 million and $10 million, FOCUS Mezzanine will fill a gap in the mezzanine debt market.

Many middle market companies require debt capital outside the typical parameters of commercial banks. FOCUS Mezzanine is designed to satisfy this capital shortfall and to help middle market companies achieve their goals. Typical uses of capital include acquisitions, recapitalizations, and financing rapid growth.

FOCUS Mezzanine seeks middle market companies with a proven product or service, annual revenues in excess of $5 million, significant profits, and an experienced management team. While banks typically loan money based on the value of the collateral a company is able to provide, FOCUS Mezzanine invests in middle market companies based on the amount of free cash flow the company consistently is able to generate.

FOCUS Mezzanine welcomes “old economy” businesses with modest growth expectations as long as there is a proven track record of successful operations. In addition, FOCUS Mezzanine's value-added services will satisfy the many middle market companies that seek capital not based solely upon the financial terms of the investment, but also based on the investor’s ability to help build the company.