Investment Activities

KCAP Financial, Inc. maintains longstanding relationships with middle market private equity sponsors, "club" lenders, investment banks and sources of non-sponsored middle market transactions. Through these relationships, we will lead and participate in various types of transactions including:

  • Senior Debt: KCAP Financial, Inc. predominantly provides cash flow based term loans, as well as revolving credit facilities.
  • Second Lien Debt: We provide second-lien term loans on a directly-sourced or participant basis to companies with proven track records of consistent cash flows and sufficient enterprise value coverage.
  • Secured and Unsecured Subordinated Loans: KCAP Financial, Inc. invests in secured and unsecured subordinated debt, which may be structured with a combination of current interest, deferred interest, or equity-linked components.
  • Equity: We can invest in minority or control equity positions alongside its private equity sponsor partners.

Our management team maintains a flexible approach to funding, and our investment activities fit a wide range of possible transaction needs. With a strong capital base, we are in a position to structure and deliver solutions that work to meet the particular transaction profile. We target the following companies:

  • EBITDA of $7.5 - 50 million
  • History of generating consistent cash flows
  • Identifiable and defendable market positions in industries with positive dynamics
  • Management teams with demonstrated track records and aligned incentives

We look at a wide variety of opportunities. Target industries include:

Terms of Use • Copyright © 2014 • KCAP Financial, Inc. • All Rights Reserved