Founded in 2003, Merion Investment Partners is a family of mezzanine capital funds, currently or previously licensed by the Small Business Administration (“SBA”) as Small Business Investment Companies (“SBIC”). Merion invests mezzanine debt with equity features in companies that have strong growth potential, proven management teams, a strategic competitive advantage and/or is operating in sectors of the economy that are poised to exhibit growth. Read More
What is Mezzanine Debt?
Mezzanine debt, often referred to as subordinated debt or junior capital, is a layer of capital that effectively bridges the gap between senior/bank debt and equity. Mezzanine debt is an effective tool for cash flow positive companies whose needs exceed their bank’s ability or willingness to lend. Examples of such situations include: buyouts, financing internal growth, financing an acquisition, financing a management buyout or generational transfer. In these situations, mezzanine debt often proves less costly than equity. In addition, mezzanine debt is a more effective choice than equity when companies have cash flow, but no significant history, collateral or size to attract senior debt. Subordinated debt can also be a more effective financing tool than senior debt when companies need access to a large piece of long term debt, but lack collateral to do so.
Here’s what just some of our clients have said
Brian Gale — I.D. Images, CEO
Kurien Jacob — Anju Software Inc., CEO
Eerik Giles — Navigation Capital
Scott Brickel – CEO of Olympia Chimney Supply, Inc.
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Please feel free to submit a proposal or business plan for an opportunity that meets Merion’s investment parameters. We do not invest in start-up businesses or real estate. For more information, see the Investment Criteria section.