April 2023

Stonehenge Partners Provides Minority Equity and Junior Capital Solutions Amidst Market Uncertainty

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Stonehenge is a Flexible Fund that Provides Minority Equity and Junior Capital Solutions in Addition to Majority Equity

For over 20 years, Stonehenge Partners has supported lower middle market companies by providing equity (majority and minority) and debt. Given the current contraction in the lending markets, Stonehenge Partners can serve as a unique financing partner that offers patient capital for lower middle market businesses. Potential advantages and considerations include the following:

  • Growth Capital – Provides businesses with capital to deliver on growth plans prior to a sale.
  • Junior Debt Financing – Provides unitranche and/or subordinated debt structures that bridge the gap beyond what traditional lenders are providing in the current market.
  • Patient Capital Structure – Provides management more autonomy to execute on growth initiatives post-closing.
  • Flexible Solutions – Provides a variety of equity and debt solutions throughout the entire capital structure.

Stonehenge has been providing equity and debt solutions to lower middle market businesses for 20+ years. We remain committed to partnering with great companies and executing quickly in the current market environment.

Investment Parameter Overview

1.    What is your target investment range?

  • $10 million to $50 million (can be a combination of equity and debt)

2.     What are examples of scenarios you would consider?

  • Acquisition financing, growth capital, shareholder liquidity, management buyout, debt refinancing

3.     Are you comfortable with other sponsors and lenders?

  • Stonehenge has a strong history of partnering with other sponsors and lending partners.

4.     What industries are you focused on?

  • Manufacturing, Value-Add Distribution, Business Services, and Healthcare Services
  • Avoid Real Estate and Retail

5.     What differentiators can you provide?

  •  We have a flexible fund mandate and can provide a variety of solutions for different capital structures. Given the economic uncertainty and current state of markets, this can be advantageous for business owners and intermediaries.
Michael Arguelles
Partner
614-439-3407
marguelles@stonehengepartners.com
Chris Buehler
Director
614-246-2542
cmbuehler@stonehengepartners.com

About Stonehenge

We are a private equity firm partnering with management teams to grow companies. We have a 25+ year history and over $1.4 billion of capital commitments