Financing options for promising businesses
Not all capital is the same. It varies in amount, timing and in degree of risk and control. As a mid-market buyout firm, we do not participate in start-ups, nor do we engineer highly leveraged investments (with high proportions of debt) and we tend to avoid minority participation. Our kind of equity investment is not for everybody but promising businesses have other options they can pursue.
If your business does not fit our profile there are many alternatives to explore:
- Bank debt is well suited to low risk situations where there is a stable cash flow to cover interest payments
- Mezzanine debt/equity suits established companies that require a capital infusion to bridge a short term capital requirement
- Venture capital is ideal for start-ups which represent higher risk and do not have a long term track record of profitability
Please visit the Canadian Venture Capital and Private Equity Association (CVCA) www.cvca.ca for alternative sources of capital.