FOCUS Mezzanine provides expansion capital to later-stage, privately held operating businesses. Such businesses must have a commercially proven product or service plus substantial revenue and profits. No start-ups or early stage companies will be considered.

Depending on the type of company, FOCUS Mezzanine evaluates many criteria as part of its disciplined and opportunistic approach to investing. The emphasis placed on each criterion is dictated by the particular situation. Some of these criteria include:

• A strong, experienced, committed management team that is financially motivated and whose incentives are aligned with FOCUS Mezzanine’s investment.
  
• A business with philosophies consistent with FOCUS Mezzanine’s.
  
• Sound financial and business information reporting capabilities that allow FOCUS Mezzanine to evaluate and monitor the business's key risks and success drivers.
  
• A well thought-out, credible operating plan, financial forecast, and capital structure that supports anticipated growth. Minimal cyclicality, strong downturn resiliency, and low risk of technological obsolescence.
  
• Demonstrated track record, strong market position, potential for future growth, and strong customer and vendor relationships.
  
• Demonstrated ability to achieve a low-cost operations and large margins sufficient to generate reasonably predictable free cash flow.
  
• Favorable gross margins and net income as compared to competitors. Significant barriers for competitors to enter the business.
  
• A use for the funds that will quickly and dramatically improve profitability.
  
• Valuable, unpledged assets that could help repay FOCUS Mezzanine's investment in the event operating earnings suffer an unexpected decline.
  
• An ability to service all obligations (including FOCUS Mezzanine’s investment) as well as multiple credible exit options.

In addition, all investments will involve businesses that FOCUS Mezzanine believes it has the expertise to evaluate and that have sufficient credit quality and debt service coverage. The businesses also must meet FOCUS Mezzanine's return criteria and be structured to provide as much down-side protection as possible as well as demonstrating multiple potential exit strategies to gain liquidity and realize equity appreciation.