Our platform company capital structures are designed to provide management with the flexibility to weather economic cycles, competitive threats and support meaningful investments in people, systems, facilities, equipment and strategic add-on acquisitions. Pfingsten has never had a single company file bankruptcy during its thirty-plus year history.
We have invested, on average, 65% equity into the capital structure of each platform company throughout our history, allowing our management teams to focus on one objective: building a better business.
Our conservative capital structures also increase our ability to close transactions. Even in volatile credit markets, over 50% equity in a company's capital structure gets deals done. We don't employ mezzanine debt, subordinated debt or second lien financing, which simplifies and streamlines negotiations. We have closed nearly 90% of our signed letters of intent and have never failed to close a transaction due to financing.