Medley primarily invests in private debt instruments arising from both traditional corporate finance and asset-based structured finance transactions. We target growing middle-market companies that have proven management teams, strong operating cashflow, defensible and sustainable market positions, and achievable growth plans.
Investment Criteria and Focus
| Investment Size | $7M – $100M (Hold Size: $7-$30M) |
| Instrument Type | Term Loans – First lien, Second lien and Unitranche |
| Term | 36-60 months |
| Return Composition | Cash interest, PIK interest, closing fee, prepayment penalties and warrants |
| Geographic Focus | North America |
| Use of Proceeds | Acquisition financing, bank debt restructurings, CAPEX, Chapter 11 exit financing, DIP financing, leveraged buyouts and management buyouts |
| Amortization | Excess cash flow sweeps, contractual and bullet |
| Borrower Profile | LTM EBITDA of $5M – $30M |
| Preferred Industries | Consumer & Retail, Energy, Financial Services, Healthcare, Industrial, Manufacturing, Natural Resources, Real Estate and Transportation |
| Sponsor Requirement | Sponsor and Non-Sponsor transactions |
| Closing | Quick feedback, streamlined underwriting and certainty of closing |
STRUCTURED FINANCE
Our team has the expertise to invest capital in a broad array of asset-backed structured finance transactions. Medley considers transactions in specialty finance, project finance, real estate finance, equipment lease finance and factoring. The team at Medley has the experience to review and consider many asset types from customary to more specialized.