Whether as a result of a comprehensive consulting analysis of a client’s options or alternatives, or as part of a specific investment banking mandate, family owned and closely held businesses are often in need of funds for strategic growth plans, shareholder liquidity, shareholder and management buyouts, succession planning, diversification, recapitalizations or dividends. We make it our business to know the capabilities and investment preferences of capital providers in the market and to know which firms are providing the most attractive proposals—ranging from senior debt providers to common equity investors.
From low cost asset-based loans and cash flow–oriented senior bank debt facilities to commercial finance debt and mezzanine or subordinated debt, we match clients with appropriate and like-minded debt financing sources to meet our clients’ goals and objectives. Debt financing can often be obtained with longer amortization periods, lower rates and a relinquishment of some personal guarantees.
Belden Hill Partners raises equity from a variety of sources nationwide. The equity provider market has become so differentiated by industry, size of investment, type of capital and holding period that we can locate right-sized equity capital for almost any client. Equity can be used for growth of the business, liquidity for shareholders, family or shareholder buyouts, deleveraging or restructuring. We’re also seasoned in arranging and negotiating a wide range of equity capital types, from mezzanine financings to longer-term preferred stock and common stock equity investments.
“Patient” Capital Financing
In addition to the usual contacts with private equity and commercial lending sources, Belden Hill Partners specializes in longer-term, more “patient” sources of business and shareholder liquidity capital, often provided by unique investor groups and family offices (those who’ve sold their businesses, have plenty of cash, and prefer to invest in quality privately owned companies on a minority-ownership basis). Through our 30-year history of serving business-owning families, we maintain regular contact with unique, larger, single-family and multi-family office investors, specialized equity investment groups, individual investors and hedge funds. These nontraditional sources of capital are often the best investors/partners for later-stage family owned and closely held businesses where the owners desire growth capital and some liquidity, as well as a flexible structure to retain meaningful equity ownership and control.
NEXT: Mergers and Acquisitions