Mezzanine capital - growth financing without giving up control

For established, profitable companies seeking growth capital or acquisition financing, our mezzanine funds provide junior capital while allowing owners to maintain controlling interest in their business.

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company INTRODUCTION

At BDC Capital, our mezzanine financing provides growth-oriented companies with the capital they need without diluting ownership or relinquishing control. Since 1953, we've invested millions in well-managed, privately-held and family-owned businesses throughout the Northeast, providing junior capital from $1 million to $7 million and above for acquisitions, expansions, buyouts, and recapitalizations.

WHY BDC CAPITAL

More than just mezzanine capital

Maintain Control

Unlike equity investors, we don't require a controlling ownership interest. You retain decision-making authority while accessing substantial growth capital.

Patient Capital

Our investment horizon focuses on long-term business success, not quick exits. We partner with management teams for sustainable growth.

Northeast Expertise

72 years of investing in New England and Northeast businesses means we understand regional markets, business dynamics, and growth opportunities.

Our process for financing success

WHY BDC CAPITAL

More than just capital investment

Multiple Use Cases

Our mezzanine capital supports growth initiatives, strategic acquisitions, management and leveraged buyouts, recapitalizations for shareholder liquidity, and market expansion projects—whatever your business needs to reach the next level.

Ideal for Family Businesses

Family-owned companies seeking to fund growth, facilitate succession planning, or provide liquidity to shareholders without losing family control find mezzanine financing the perfect solution.

Acquisition Power

When acquiring competitors or complementary businesses, mezzanine capital fills the gap between senior debt and equity, allowing you to complete transactions while preserving your ownership position.

No Personal Guarantees

Unlike traditional bank loans, mezzanine financing typically doesn't require personal guarantees from owners, separating business risk from personal assets.

Flexible Return Structure

We structure returns through market rate interest combined with success fees based on business performance or warrants for future equity participation, creating alignment between our success and yours.

Frequently asked questions

What size mezzanine investments does BDC Capital make?

We provide mezzanine financing from $1 million to $7 million and above for qualified businesses. Investment size depends on your capital needs, business cash flow, existing capital structure, and growth objectives.

What types of companies are ideal for mezzanine financing?

We target well-managed, strongly positioned companies located in the Northeast with solid management teams, significant equity stakes, defensible market positions, annual sales typically of $7.5 million or more, positive cash flow, and significant growth potential or acquisition opportunities.

How does mezzanine financing work with my existing debt?

Mezzanine capital sits subordinated to your senior debt but ahead of equity in the capital structure. This allows you to leverage your business more fully while still maintaining ownership control. Most senior lenders are comfortable with mezzanine financing as it strengthens the overall capital base.

What return does BDC Capital expect on mezzanine investments?

Our mezzanine investments are structured with market rate interest plus an equity component in the form of success fees based on business performance or warrants providing the right to purchase equity at a predetermined price. This structure aligns our returns with your company's success.

Do I have to give up board seats or operational control?

No. Unlike traditional equity investors, we don't require board seats or operational control. You maintain full management authority and decision-making power while we provide capital and support. We do require regular financial reporting and communication.

What's the typical term for mezzanine financing?

Mezzanine investments typically have terms of five years with regular interest payments and principal amortization. The equity component (warrants or success fees) is realized at maturity, refinancing, or a liquidity event. Terms are structured to match your business needs and cash flow capabilities.

Fuel your growth without sacrificing control

Partner with experienced mezzanine investors who understand your business.

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