Minority stake lending

by a searcher from University of Colorado at Boulder

3 years ago

Looking at minority position (30%) in mature, established, FCF +tive processing company. The company is unlevered. The minority stake would be held GP/LP structure, and GP would have board seat. If  GP wants to add leverage at fund level to this unlevered asset, What are best options?  The only collateral is the minority equity, cannot pledge company assets.

1 like
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5 comments

lender from California State University, Sacramento - College of Business Administration

For most if not ALL conventional sr. debt (not speaking for alternative lending options) this is not a commercial lending structure for buying into a minority stake. If it's the other way around and the seller is only rolling a minority interest, then that's done (and generally encouraged) for CONVENTIONAL non-SBA Sr. Debt.

3 years ago | like reply | 2 likes

lender from Clemson University

I would say this is either a seller finance note, or go to a Private Banking officer at a bank and see if you can do a personal loan through wealth management or private banking.

3 years ago | like reply | 0 likes

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