Overview
Harvest Capital Credit LLC is a specialty finance company that provides customized financing to small and midsized businesses. Our products include junior secured term loans, subordinated debt investments and minority equity co-investments. Our ability to invest in multiple layers of a company’s capital structure allows us to offer creative and flexible financing solutions.
Target Market
We will consider both cash flow-based financings for companies with a history of consistent profitability and opportunistic asset-based transactions in situations where collateral coverage mitigates recent operational under-performance. Our origination appetite includes transactions initiated by private equity sponsors as well as non-sponsored deals for companies with revenues of $10 million to $75 million. We intend to directly originate transactions but will also consider syndicated or club transactions.
Target Investment Size
Investments usually take the form of subordinated debt and, to a lesser extent, junior secured term loans. We will also consider minority equity investments alongside a porfolio company’s ownership and/or private equity sponsor. We seek to make debt investments ranging in size from $1.5 million to $7.0 million and equity co-investments of up to $0.5 million, or larger amounts through our limited partner relationships.
Investment Objective
Our investment objective is to generate both current cash income and capital appreciation. To accomplish this objective, we seek current income primarily from the interest on our debt investments and the related origination fees, while we aim for capital appreciation through warrants and other equity interests due to the long-term growth of our portfolio companies.
Investment Criteria
We are focused on providing customized financing solutions. Our flexibility allows us to invest in multiple layers of a company’s capital structure, from junior secured debt to subordinated debt and minority equity capital.
An ideal financing candidate for Harvest Capital Credit has the following characteristics:
• Is an established, U.S.-based company.
• Maintains significant market share in a defensible industry niche.
• Has sound historical financial performance with industry appropriate margins.
• Has low risk of technological and/or product obsolescence.
• Maintains a diversified customer and supplier base.
• Has a solid and proven management team with aligned incentives.
• Generates minimum EBITDA of $1,500,000.
• Has a financing need of at least $1,500,000.
Why Harvest Capital Credit?
Flexibility. With the ability to invest in multiple layers of a company’s capital structure, we can provide creative and flexible financing solutions.
Reliability. We provide company owners and sponsors with a high likelihood of execution. Our investment committee pre-screens each funding opportunity at an early stage, increasing the probability of a favorable outcome as the investment process unfolds.
Responsiveness and Timeliness. Our ability to respond quickly to your needs sets us apart from the competition. No frustrating chain of approval. No red tape. Just a streamlined decision-making process designed to give you what you need—a quick answer.
Trust. We believe trust is the most fundamental building block of a relationship, and we endeavor to not only earn our clients’ trust, but to keep it—with honesty and integrity in all we do.