The Scenario: The owner of a specialty food company had taken an investment from a family friend to fund the development of his business. As the business matured and the investor reached a certain age, both sides saw the wisdom of the owner/operator buying out his passive partner. To fund the partner buy-out, the owner evaluated private equity, corporate mezzanine debt and a structured loan from NYPF.
The Deal: He chose to borrow against his illiquid equity from NYPF because we afforded him 100% control of his company, provided him a competitive cost of capital and maintained the covenant flexibility he desired with respect to his senior lenders at the operating level.
The Result: The business is now generating cash flow sufficient to retire the NYPF structured loan prior to its maturity.