Special-Opportunity Lower Middle Market Sector Financing Solutions

Lower Middle Market companies typically have up to $200.0 million of revenue, up to $15.0 million of EBITDA and often need financing for a specific event such as an acquisition, significant capital investment or recapitalization to spur growth. Hercules works with these types of companies to address their unique set of growth circumstances. These financing solutions include:

  • Senior secured revolvers and term loans
  • Unitranche and "one-stop" financings
  • Mezzanine debt, including "last-out" and second lien financings

Hercules typically provides non-control financing solutions used for the following purposes:

  • Refinancing of existing indebtedness
  • Acquisition financing – control buyouts and minority recaps
  • Dividend recaps
  • Growth capital

Hercules focuses on growth oriented companies in our targeted sectors with the following characteristics:

  • EBITDA up to $15.0 million
  • Total capital needs up to $40.0 million
  • Strong collateral coverage via enterprise value and/or hard assets
  • Strong/durable capitalizations
  • Experienced management teams with meaningful ownership stakes in the business
  • Private equity-backed or publicly traded