Amount: New York Private Finance offers structured, medium-term financings (up to six years), with deal sizes ranging from $5 million to $35 million.
Purpose: Our loans are made to individual borrowers principally to finance their equity investments in private companies to fund growth strategies, make acquisitions, buy out partners, obtain more attractive overall financing terms or effect generational changes of control. Our facilities are to individual investors and are not obligations of the operating vehicles into which the client may be investing.
Collateral: Collateral for these loans comes in the form of pledges of illiquid assets such as stock in privately held companies, interests in private equity funds, venture capital portfolios or other asset classes typically held by private investors active in the mid-market.
Rate: In addition to charging a current coupon, a portion of the interest cost of each loan takes the form of a “participating interest” in the investing activity of the client. Investors view this as an alignment of interests, and the all-in cost is lower than that of corporate mezzanine debt financing.
Loans are structured to co-exist with more conventional facilities from private banks, which may be secured by liquid assets or residential real estate.
Borrowers see us as an alternative to outside private equity and corporate mezzanine debt and our loans work well with all types of business capital.
Brian Bristol, 212-850-4641, firstname.lastname@example.org