Mezzanine Financing Investment Philosophy

Mezzanine capital is the level of capital between senior debt and equity, and typically is issued in the form of subordinated debt or preferred stock with equity provided by a warrant, conversion feature, or the outright purchase of common stock. Mezzanine capital is a financing option for companies in transition. When a business is unable to obtain adequate financing from its senior lender, but still wants to take full advantage of its opportunities, William Blair Mezzanine Capital Partners (WBMCP) can provide needed capital.

We provide mezzanine capital to middle-market companies that have a record of generating strong, consistent earnings and cash flow. As a mezzanine investor, we are both a lender and a shareholder. This dual role requires a balanced approach toward safety of principal and equity appreciation. To achieve both objectives, we focus exclusively on high-quality, established businesses with well-defined, carefully conceived operating strategies. For more information on the types of companies in which we invest, please review the funds' investment criteria.

Our professionals believe that it is important to act quickly, decisively, and prudently in the investment process. They take an active role in the structuring of every transaction, placing an emphasis on achieving a timely closing. After an initial investment in a company, we maintain a high level of commitment, seeking to make positive contributions to a wide array of corporate issues. We invite you to review different transaction types and how mezzanine capital can be strategically employed.

As an investment, our funds provide an alternative to equity as well as a creative way to participate in the growth of solid, well-run companies.