FOCUS Mezzanine invests between $2 and $10 million in middle market companies in the form of either debt or preferred equity. These investments are subordinate to the middle market company’s senior debt financings and have priority over the company’s common equity capital.

Debt Investments

FOCUS Mezzanine’s debt investments typically have origination fees, a current interest rate of between 12 percent and 15 percent, plus detachable warrants for common equity of the business.

Preferred Equity Investments

FOCUS Mezzanine’s preferred equity investments typically have origination fees, no current payments, a preferred liquidation value which must be redeemed after three to five years plus detachable warrants for common equity of the business.