Direct Lending Practice

Direct Lending Practice

KCAP is a relationship-oriented investor focusing on the lower middle-market. We provide flexible, cash-flow based financing solutions with the ability to invest throughout the capital structure. Our investment size ranges from $5 to $25 million.

KCAP originates transactions from middle market financial sponsors and various intermediaries. We have the ability to lead financings or partner with other investors.

INVESTMENT CHARACTERISTICS

  • EBITDA size of $5 to $25 million
  • History of generating consistent cash flows and stable financial performance
  • Identifiable and defensible market positions in industries with favorable dynamics
  • Management teams with demonstrated track records and aligned incentives

 

INVESTMENT STRUCTURES

  • Unitranche loans (including last out)
  • First lien loans
  • Second lien loans
  • Subordinated debt
  • Equity co-investment

 

INDUSTRY

KCAP is a generalist investor with experience in the following sectors:

  • Aerospace/Defense
  • Business Services
  • Consumer Products
  • Education
  • Food & Beverage
  • Healthcare
  • Industrial & Environmental Services
  • Logistics & Distribution
  • Manufacturing
  • Media & Telecommunications