Bespoke funding to meet challenges and create value
There is no "menu of products" at Mercatus. Each loan is tailored to meet the needs of a specific borrower at a specific time.
Our process combines customization with speed. The first step is, we listen. We work to truly understand a borrower's challenges and opportunities, which allows us to craft a structure that achieves management's goals. Our team's deep experience in credit across industries and capital structures, in both straightforward and complex situations, lets us quickly identify a combination of terms that fit a business best.
No menu…truly custom.
Borrowers
- Lower-middle and middle-market
- Industry agnostic
- EBITDA of $5M to $40M
- Management, family, and/or entrepreneur-owned (non-sponsored or lightly sponsored)
- History of solid cash flows, though positive current cash flow not required
Loans
- Loan sizes of $15M to $75M with flexibility to provide more
- Across North America
- Secured, cash flow based, positive current cash flow not required
- First lien term loans and second lien term loans
- Underwriting that recognizes less-obvious underlying value
- Able to accommodate complex capital structures
Loan purposes
- Working capital
- Growth capital
- M&A
- Ownership transition
- Business model transition
- Legal or regulatory transition
- Recapitalization
- Debt refinancing
- Debtor-In-Possession (DIP) financing
“ We created Mercatus because we see it as a vehicle for win-wins: The lower-middle-market borrower, a segment we know to be underserved, is able to get the dynamic and highly effective financing it needs, and the platform can earn the risk-adjusted returns for which many lenders are unable or unwilling to work.”