Established in 1977, Massachusetts Capital Resource Company is a limited partnership owned and funded by Massachusetts-based life insurance companies. MCRC’s mission is to provide risk capital to fill the senior debt to equity “gap” experienced by many companies. Our investment activities complement, rather than compete with, the financing provided by senior lenders and equity investors. We support companies in a broad base of industries including the manufacturing, distribution, consumer products, business services and technology sectors.
INVESTMENT FOCUS
MCRC provides mezzanine capital, late-stage venture capital, and long term debt to Massachusetts-based manufacturing, distribution, service and technology companies. Most of our companies report sales in excess of $5 million and are profitable at the time of our initial investment. Roughly 80% of our investments are in the form of subordinated debt although we are open to purchasing common and preferred stock as part of our financing package. Our debt transactions typically mature in seven years and feature fixed rates of interest, with interest payable currently and amortization schedules based on the company’s cash flow forecast. When asked to take an equity risk, we seek a more open-ended return in the form of warrants for the purchase of stock or a direct equity investment. We invest in companies at various stages of development and frequently support our portfolio companies with follow-on investments as their financing needs change. We welcome proposals from technology and non-technology companies seeking $1 to $5 million in capital to fund growth plans, finance an acquisition or complete a recapitalization.
INVESTMENT FOCUS
MCRC provides mezzanine capital, late-stage venture capital, and long term debt to Massachusetts-based manufacturing, distribution, service and technology companies. Most of our companies report sales in excess of $5 million and are profitable at the time of our initial investment. Roughly 80% of our investments are in the form of subordinated debt, although we also occasionally purchase common and preferred stock as part of our financing package. Our debt transactions typically mature in seven years and feature fixed rates of interest, with interest payable currently and amortization schedules based on the company’s cash flow forecast. When asked to take an equity risk, we seek a more open-ended return in the form of warrants for the purchase of stock or a direct equity investment. We invest in companies at various stages of development and frequently support our portfolio companies with follow-on investments as their financing needs change. We welcome proposals from technology and non-technology companies seeking $1 to $5 million in capital to fund growth plans, finance an acquisition or complete a recapitulation.
GROWTH CAPITAL
For many companies, growth is a strategic initiative but financing growth can be a challenge. Company size, industry and the amount of financing needed may limit a business’ access to capital. Mezzanine capital is an attractive financing alternative for middle market and emerging growth companies.
Mezzanine financings typically consist of a long term fixed rate subordinated loan and an equity feature such as warrants. As a hybrid form of capital, mezzanine transactions blend debt and equity features and can be structured to fit a company’s unique financing needs.
GROWTH CAPITAL
For many companies, growth is a strategic initiative but financing growth can be a challenge. Company size, industry and the amount of financing needed may limit a business’ access to capital. Mezzanine capital is an attractive financing alternative for middle market and emerging growth companies.
Mezzanine financings generally consist of a long term fixed rate subordinated loan and an equity feature such as warrants. As a hybrid form of capital, mezzanine transactions blend debt and equity features and can be structured to fit the unique requirements of a company’s situation.
LONG TERM DEBT
MCRC provides senior or subordinated debt for terms ranging from five to ten years to companies seeking to fund permanent working capital needs and capital expansions.
Our loans vary in size from $1 million to $5 million. Interest rates are determined by market conditions and are fixed over the term of the loan to provide insulation from interest rate fluctuations. Financial covenants are negotiated to reflect each company’s financial condition and operating situation.
LONG TERM DEBT
Mass. Capital provides senior or subordinated debt for terms ranging from five to ten years to companies seeking to fund permanent working capital needs and capital expansions.
Our loans vary in size from $1 million to $5 million. Interest rates are determined by market conditions and are fixed over the term of the loan to provide insulation from interest rate fluctuations. Financial covenants are negotiated to reflect each company’s financial condition and operating situation.
ACQUISITIONS & RECAPS
Acquisition and recapitalization transactions frequently include mezzanine financing as part of the capital structure. MCRC participates with management teams, financial investors and senior lenders to finance leverage buyouts, strategic acquisitions and recapitalizations by filling the financing gaps in middle market transactions.
Frequently our cash-flow oriented investments are structured as subordinated notes with warrants, but combinations of debt and equity instruments are also used in some situations.
ACQUISITIONS & RECAPS
Acquisition and recapitalization transactions frequently include mezzanine financing as part of the capital structure. Mass. Capital participates with management teams, financial investors and senior lenders to finance leverage buyouts, strategic acquisitions and recapitalizations by filling the financing gaps in middle market transactions.
Frequently our cash-flow oriented investments are structured as subordinated notes with warrants, but combinations of debt and equity instruments are also used in some situations.
