|FUNDLESS/INDEPENDENTLY SPONSORED TRANSACTIONS|
In the world of mergers and acquisitions, the financial sponsor community plays a significant role in acquiring businesses, frequently competing with strategic buyers. The financial sponsor community is comprised of multi-billion dollar, institutionally-backed funds, smaller institutional funds, pledge funds and fundless sponsors (who raise equity money for transactions on a deal-by-deal basis).
While all of these groups will employ mezzanine capital to complete acquisitions, Merit can be particularly helpful to small funds and fundless sponsors. Merit has experience working with these groups to complete acquisitions, providing subordinated debt and equity to fund a transaction that might otherwise be too large for these smaller funds.Key benefits of using mezzanine debt in conjunction with a Fundless or Small Fund Sponsored Buyout include the following: