Financial Institutions
Saugatuck executes many transactions that require capital in a number of different forms. In addition to providing the equity capital necessary to complete an acquisition, Saugatuck arranges the debt financing necessary to build the appropriate capital structure. The longevity of our history and the time we spend with lenders helping them understand our investments has helped us create an invaluable network of all levels of debt providers. The backing by these financial institutions ensures that the appropriate capital structure will be put in place for the transactions we complete. In addition, it allows us to approach potential investments with the confidence that we have all of the necessary pieces to finance a transaction.
Senior debt plays an important role in the financing of buyouts. Saugatuck has strong relationships with a number of banks and non-bank senior lenders, which we call upon to provide the necessary leverage. Even in difficult markets when debt is not readily available, Saugatuck is able to make investments with the support of these financial institutions.
Another key piece of the capital structure is subordinated debt. There are many different providers of mezzanine financing. Many banks have a group that focuses on the junior part of the capital structure. In addition, there are many independent mezzanine funds as well as small SBICs that provide subordinated debt.
Saugatuck maintains close relationships with institutions that fall within all three of these categories. We are able to call upon all of these sources of capital when necessary, to successfully finance a transaction.