We provide long-term debt and
equity capital to primarily private, middle market companies
in a variety of industries. Our investments take the form
of first lien senior and unitranche
loans, subordinated debt,
and control (i.e. buyout investing) and non-control equity
stakes in middle market companies.
Allied Capital seeks to invest in stable, less cyclical
companies that have the ability to generate significant free
cash flow and high returns on invested capital. Our total
return approach to investing emphasizes a balanced mix of
debt investments and buyout investments structured to produce
both current income and the potential for future capital
gains. Our diverse platform of managed assets gives Allied
Capital the flexibility to provide a middle market company
with investment capital ranging from senior debt to junior
debt and equity.
Debt Investing
Senior Debt
Allied Capital provides senior debt to middle market companies.
Allied Capital’s fully-dedicated senior loan team
has extensive experience structuring, syndicating and managing
middle market senior credit facilities. This team has been
Lead Arranger or Co-Agent on over $2.5 billion of middle
market senior loan financings since 2006. Allied Capital
provides fully-underwritten senior loan commitments up
to $125 million, and can hold positions up to $25 million
in our portfolio or in the portfolios of one or more of
our managed funds dedicated to this asset class.
Click to view our recent senior debt transactions
Unitranche Debt
A unitranche debt facility combines traditional senior and junior debt terms
generally into a single first lien loan facility. A unitranche loan blends
the cost of senior and junior debt, providing the borrower with a single
interest rate from a single lender. The unitranche structure offers simplified
documentation, reduced amortization requirements, and the ease of future
add-ons and modifications. Allied Capital originates unitranche loans for
our portfolio and for the portfolio of Unitranche Fund LLC, one of our managed
funds.
Click to view our recent unitranche transactions
Junior Debt
Allied Capital provides junior debt capital – including second lien and
subordinated or mezzanine debt – to support the long-term financing needs
of middle market companies. Allied Capital has been a pioneer in the subordinated
debt markets since its founding in 1958. We provide junior debt of up to $150
million per transaction.
Click to view our recent junior debt transactions
One-Stop Financings
Allied Capital has the ability to provide one-stop financings to middle market
borrowers, utilizing our broad investment platform to provide the total senior
and junior capital for a transaction.
Click to view our recent one-stop transactions
Buyout Investing
In addition to our lending activities, Allied Capital works
with middle market management teams to buy companies with enterprise
values of up to $500 million. We target growing companies with
stable, cash-flow generating characteristics and we seek to
develop long-term partnerships with talented management teams
to build and create value for all stakeholders.
In a buyout transaction, we generally invest senior debt,
subordinated debt and equity, where our equity ownership
represents a significant portion of the equity but may or
may not represent a controlling interest. Our one-stop financing
capabilities enable us to commit to the entire capital structure
of a deal.
Allied Capital brings significant in-house resources to
a buyout transaction beyond our financing capabilities. Our
team of private finance professionals bring operational,
managerial and industry experience to each transaction, including
financial management, operations and supply chain consulting,
shared spending initiatives, marketing and human resource
management. Our value-added approach to buyout investing
combined with our solid capital base makes us an attractive
partner for middle market management teams.
Click to view our recent buyout transactions
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