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Investment Criteria

The Morgan Keegan Mezzanine Fund provides growth and acquisition capital to a broad range of companies who generally have the following characteristics.

  • Size: Revenues of at least $10 million

  • Cash Flow: Positive historical cash flow

  • Leverage and Debt Coverage: Appropriate relative to business risk, capital structure and enterprise value

  • Liquidity: Sufficient to meet the on-going working capital requirements of the company.

  • Industry: Favorable outlook for sustainable revenue growth

    • Focus on established service and manufacturing companies

    • The Fund will not invest in real estate, financial services, or high-technology industries

  • Management: A proven, well-balanced management team with significant personal capital at risk

  • Geographic Location: Preferably in the Southeast, Mid-Atlantic, Midwest, and Southwest

Other Company Characteristics:

  • Defendable market position with a diverse customer base

  • Effective financial controls and information systems

  • Viable exit strategies