Capital Raises
TrueNorth advises middle-market clients in raising capital from institutional investors and lenders for a variety of purposes, including the financing of organic growth, add-on acquisitions, rescue capital and/or the
recapitalization of the ownership base (to provide liquidity for shareholders) or the balance sheet (to reduce debt service requirements).
Similar to the M&A sell-side transaction process, the capital-raise transaction process entails three overlapping phases: (1) preparation & positioning, (2) marketing & proposals development, and (3) negotiations & closing.
Depending upon our clients’ business prospects and goals as well as their debt capacity and capital raise amounts, TrueNorth will develop a potential market consisting of appropriate institutional investors and lenders, which could include (a) banks, insurance companies, finance companies, unitranche and other senior short-term and long-term lenders, (b) mezzanine groups and other subordinated debt providers, and (c) private equity, venture capital, family offices and other minority equity investors. Again, our senior bankers’ deep involvement and experienced day-to-day guidance and professional advocacy for our clients ensures a competitive process among prospective lenders and investors that is designed to yield various financing options for our clients’ consideration and, ultimately, the optimal capital structure and financing terms.
Often, a restructuring client is in danger of precipitous decline if urgent liquidity and other financial and operating issues are not quickly addressed. These complex, fast-moving transactions usually utilize our expertise in either raising capital and/or effecting a sell-side
transaction.
Restructurings require a specialized skill-set, including an in-depth understandings of bankruptcy laws and security interests. For example, TrueNorth is experienced in advising clients on Chapter 11 bankruptcy sales subject to Section 363, Article 9 transactions, and negotiation of composition agreements outside of Chapter 11.
In addition to working with distressed and special-situation clients, our restructuring specialists have extensive experience in providing creditor & debtor advisory services and bankruptcy advisory services.