Structures

Sage Capital and its investing partners offer a flexible approach to structuring transactions. Since we are individuals looking for long-term investments rather than an institutional fund, we have the ability to tailor our investments to best match the needs and goals of the owners and managers with whom we work. We consider opportunities involving acquisitions, minority investments & growth capital and mezzanine capital.

Acquisitions. We acquire controlling positions in companies and join with existing or new management teams in buyouts. We work with sellers, managers and their advisors to structure transactions for mutual advantage. As time is often a manager’s scarcest resource, we strive to be efficient in our investment process, setting the right milestones at each stage and giving prompt, forthright feedback along the way. We appreciate the paramount importance of integrity and reliability in any sale process, and we set for ourselves the highest standards of conduct in working with sellers, managers and their advisors towards a successful transaction.

Minority Investments & Growth Capital. We will provide new capital to support growth, to fund a strategic acquisition, to facilitate a recapitalization or to buy out existing minority investors. We will also join as co-investors with others who share our basic values. Since we are not passive investors, we do not take minority positions unless they are meaningful enough for us to be able to make a positive difference. We seek partnerships, not passive portfolios.

Mezzanine Capital. In addition to investments in the form of common stock or other equivalent equity interests, we provide mezzanine capital to companies. Since we are not an institutional LBO fund, we have the flexibility to tailor the structure of our investments to best meet a company’s unique needs. By “mezzanine capital” we mean investments in the form of subordinated debt or preferred stock, accompanied by an appropriate level of participation in the upside performance of the company. Mezzanine capital is junior to bank debt and usually can be structured to count as equity in banks’ credit analysis and in their financial covenants. In the right circumstances, it can provide an attractive alternative to raising equity, as it has a lower expected cost-of-capital in return for a preferential right of repayment.