A Team You Can Trust
Founding and leading companies, structuring and underwriting deals, and consistently providing superior returns to shareholders as chief executives—that’s what we’ve been doing the last several decades. With over 75 combined years of proven experience, our leadership team provides an unparalleled blend of strategic, analytical and operational expertise to meet your capital needs.
Over 75 Combined Years of Proven Experience.
A Team You Can Trust
We will strive to understand and fulfill your capital needs, while maintaining the highest degree of integrity and placing the value of our relationship with you above all else.
FSFF Combines Executive and Entrepreneurial Experience.
Foundation Specialty Financing Fund’s team has experience in structuring numerous types of transactions involving various parties for a wide range of companies and industries. Our mezzanine funding deals are not simply limited to subordinated debt; we also work with a network of senior lenders to secure additional capital based on the leverage we provide. While there’s no “typical” deal, many of the transactions we structure fit the following profile parameters:
- Industry Focus: Financial Services.
- Initial Transaction Size: Minimum of $1 million, maximum of $5 million.
- Term: Two- to five-year repayment: Typically interest only with a balloon at maturity.
- Financing Purpose: Growth capital, senior credit expansion leverage, management buyout, all without equity dilution.
- Client Management Experience: Minimum 10 years in similar business.
- Profitability: Must be profitable currently.
- Margins: Sufficient to sustain current payments and retire principal without significant growth.
- Client Management Commitment: Guarantees from majority stockholders.
- Control: FSFF does not seek equity or control.
- Financial Statements: Audited statements.
FSFF is a private mezzanine fund that specializes in providing subordinated capital to specialty finance companies. Subordinated capital lets owners maintain control of their company as there’s little to no dilution in such deals.
The capital that FSFF provides is typically used by companies to:
- Complete a management buyout,
- Realize imminent growth opportunities.
By working with a network of senior lenders, blending subordinated debt with the lower cost of senior debt offered, we can provide clients with an attractive overall cost of capital to grow your business.
- $5 million asset purchase facility to a consumer installment lender to start a new product line.
- $5 million mezzanine loan to a merchant cash advance provider to leverage growth opportunities.
- $3.5 million subordinated term loan to a fast growing consumer finance company to leverage their senior credit facility.
- $1.7 million preferred equity investment in auto dealer finance company.
- $2.1 million in mezzanine loan to a auto dealer with a captive finance unit to provide leverage for new senior credit facility.
- $1.5 million subordinated term loan to a growing commercial commercial truck dealer with a captive finance unit.