| Founded in 2003, Merion Investment Partners, L.P. is a mezzanine capital fund licensed by the Small Business Administration (“SBA”) as a Small Business Investment Company (“SBIC”). Merion invests mezzanine debt with equity features in companies that have strong growth potential, proven management teams, a strategic competitive advantage and/or are operating in sectors of the economy that are poised to exhibit growth.
Mezzanine debt, often referred to as subordinated debt or junior capital is a layer of debt capital that effectively bridges the gap between senior/bank debt and equity. Mezzanine debt is an effective tool for cash flowing companies whose needs exceed their Banks ability or willingness to lend. Examples of such situations include: financing internal growth, financing an acquisition, financing a management buyout or generational transfer. In these situations, mezzanine debt often proves less costly than equity. Often, 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.
Merion is comprised of the founder and former management of a mezzanine lending unit within Mellon Bank. Bill Means, Anthony Caringi and Gayle Hughes were joined by Ed Rodgers, a former Managing Director with Wachovia Securities and Brian O’Neill, a successful entrepreneur, to form Merion. Collectively, the team has decades of experience in venture capital, commercial banking, investment banking, operating management and entrepreneurship.
The Fund is well positioned to take advantage of the increasing number of opportunities to invest between $3 million and $8 million of mezzanine capital in growth companies. The majority of the Partners have been actively involved in the mezzanine lending market since 1995. |
