Our platform company capital structures are designed to provide management with the flexibility to weather economic cycles and support meaningful investments in infrastructure, drive operational improvements, accelerate organic growth, and execute strategic acquisitions.
We invest a minimum of 50% equity into the capital structure of each platform company, allowing our management partners to focus on one objective: building a better business.
Our capital structures also increase our ability to close transactions. Even in volatile credit markets, 50% equity in a company's capital structure gets deals done. We don't employ mezzanine debt, subordinated debt, second lien or other forms of non-bank financing, which simplifies and streamlines negotiations, and we pick our lending partners in every transaction. As a result, we have closed nearly 90% of our signed letters of intent, and have never failed to close a transaction due to financing.