Chatham Capital provides growth and acquisition capital to companies with annual revenues of at least $10 million that can service debt with cash flow generated from operations (e.g. EBITDA > 10% of revenue). Although we will consider investments located anywhere in the United States, our principal activity is in the Southeast, Midwest and Mid-Atlantic. Chatham's primary focus is health care, manufacturing and business services; however we will consider investments in all industry types. Evidence of our diverse investment portfolio companies can be found by clicking here. We will also consider turnaround situations, provided there is a realistic, professional turnaround plan and assets to secure the loan. Chatham does not provide venture capital, make real estate investments or finance early stage companies with no history of revenue or cash flow.

Chatham typically makes an investment of $2-60 million in the form of subordinated debt with interest paid monthly and nominally priced, detachable warrants to acquire an equity ownership position. In most cases, the firm’s subordinated loan will have a three to five year maturity and will not require principal repayments prior to maturity. This structure allows a company to use its cash flow to support continued growth. Repayment of the loan may come from one or more sources, including existing cash flow, senior debt refinancing, sale of additional equity or sale of the company.

In evaluating a company, Chatham looks for certain attributes, including:

• proven, well-balanced management team with significant personal capital at risk or substantial equity sponsor;

• effective financial controls and information systems;

• favorable industry outlook for sustainable revenue growth;

• dominant market position or defendable niche without significant customer concentrations; and

• proposed capital structure that is appropriate for the company.

At Chatham Capital, we believe that building strong, long term relationships is vital to business success. Banks, financial intermediaries, equity funds and other referral sources are critical to our success and are highly valued. We have a keen understanding of building partnerships with key vendors, customers and affiliates. Additionally, we assist our portfolio companies to leverage their internal resources through such mutually beneficial relationships. We also bring deep experience and skills in structuring and negotiating corporate partnerships. Another strength of Chatham is the resource base provided by our Limited Partners, who are primarily current and former chief executive officers of leading companies in a wide variety of industries. The capabilities, relationships and ongoing involvement of the Limited Partners in our fund and our collaborative approach distinguishes Chatham Capital from many other mezzanine funds.

Chatham welcomes and encourages the participation of other knowledgeable investors in our investments. We believe that our portfolio companies benefit from a diversity of views, experiences and relationships. When Chatham acts as a lead investor, we can arrange, as needed, for the participation of other high-quality investors. We typically lead or participate in transactions requiring less than $30 million of mezzanine financing; however Chatham has led mezzanine transactions up to $60 million.

Time is of the essence in every business, but it is especially important to companies and intermediaries seeking financing. Our underwriting process is short and decisive. We are small and unencumbered by lengthy procedures and bureaucracy. Chatham’s partners directly analyze and respond to all proposals. We are continually looking for new investment prospects. If you feel you have an opportunity that fits our approach and strategy, please submit a business plan or executive summary for our consideration. For the initial review, the firm requires, at a minimum, a description of the company and industry, an overview of the company’s strategy and business model, historical and projected financial statements and resumes of key managers.