Characteristics: Situational capital need for working capital/liquidity, growth capital, acquisition financing, and/or special situations.
Revenue: $20 – $100+ million
Proforma EBITDA: $1 – $5+ million
Underwriting: Focus on proforma free cash flow / liquidity for debt service and other assets / enterprise value as secondary source of repayment.
Structure: Second lien / split lien, senior secured, bifurcated.
Characteristics: Emerging growth technology companies seeking non dilutive capital.
Revenue: $3 – $10+ million recurring revenue
EBITDA: Clear path to profitability or sufficient liquidity reserves.
Underwriting: Focus on recurring revenue, liquidity, and enterprise value.
Structure: Second lien / split lien, senior secured, or bifurcated. We will often start senior secured and transition to second lien as the company grows and can obtain traditional bank financing.
Characteristics: Asset rich, cash poor entrepreneur in need of short term liquidity or a bridge loan, sensitive to dilution, speed to close required.
Underwriting: Sufficient net worth, dedicated collateral, and/or future liquidity event to support SGCP’s loan.
Structure: Flexible security positions around financing situation, cash flow, and available collateral.