Investment Size and Structure

Our direct investments at Bond Capital Mezzanine Debt Fund range from $1 million to $10 million in mezzanine debt. We seek to arrange financially possible structures without syndication using a maximum appropriation of $30 million senior debt, $10 million mezzanine debt and $10 million equity. If it is necessary to access more capital, Bond Capital Mezzanine Debt Fund uses its proprietary syndication network.

A typical Bond Capital Mezzanine Debt Fund investment consists of an interest bearing debt or debt-like instrument being paired with an "equity kicker", usually in the form of warrants, to acquire stock of the borrower. Mezzanine debt investments can be structured using other types of securities as well, such as preferred stock in place of a debt instrument, or a PIK (payment-in kind) to reduce the current-pay cash interest.