PRIVATE PLACEMENTS
Houlihan works closely with middle-market businesses (both public and private) in order to optimize their capital structure(s) and to utilize the lowest cost of capital available. Our placement specialists combine this in-depth knowledge of private capital sources with the firm's institutional expertise in financial engineering and market analytics to create optimal capital structures and value maximization strategies for our corporate clients. Houlihan advises clients on how to obtain the lowest cost of capital by seeking various forms of financing including:
SENIOR DEBT
Houlihan placement specialists are in continuous contact with senior credit officers at major banks, private funds, insurance and other financial institutions. This enables us to understand the changing lending preferences and risk tolerances of each institution and the strategic makeup of their portfolios. We pride ourselves on knowing each lender’s capital appetite, risk profile, structural requirements, credit process, turnaround capabilities and likelihood of delivery. This knowledge is integral to matching clients with appropriate lenders. Our long record of accomplishment enhances the firm’s credibility among lenders, often opening doors for new clients.
We maximize utilization of a company’s assets both on and off balance sheet. We can look at a company’s assets and unlock value through unique underwriting, which focuses on hard and soft assets (i.e., intangibles, foreign accounts receivable and inventory). We evaluate a company’s true enterprise value and cash flow generation capability to maximize financial leverage multiples.
SUBORDINATED DEBT
Houlihan maintains relationships with subordinated debt providers — from insurance companies and collateralized loan obligations (CLOs) to hedge funds and private funds — and consults with many of these capital providers on a regular basis regarding their investment criteria. Using this insight and knowledge, we strive to identify the most appropriate financing sources for clients and structure transactions to address the needs of all participants. Furthermore, these relationships allow us to tailor the return profile for individual clients, striking a careful balance between current and future return.
PRIVATE EQUITY
Houlihan has close relationships with the industry’s broadest array of private equity firms. We continually track their industry sector, size and ownership preferences. We have fostered relationships with a host of other potential equity financiers, including individual/family and corporate investors. Our strength lies in raising minority equity that strikes a balance between the objectives of the new investor, existing stakeholders and management.
PRIVATE INVESTMENT IN PUBLIC EQUITY ("PIPEs")
Houlihan has experience and expertise in structuring and placing PIPE transactions for middle market public companies. PIPE financings are tailored for a particular company’s capital structure and financing needs, including growth capital, acquisition financing, recapitalizations and secondary equity sales. We maintain relationships with a broad array of PIPE financing sources, including mutual funds, crossover funds, hedge funds and private equity funds.
Houlihan can provide private placement services for middle-market companies, including many public companies that seek access to private capital. Because private placements can be completed in less time, at a lower cost, and often with greater predictability than public offerings, they may be an attractive alternative to raising capital in the public markets.
Frequently, the private placement market is the only practical source of capital available to a company. Over the years, our professionals have assisted numerous companies with privately-placed senior secured and unsecured loans, mezzanine securities, high-yield notes, convertible debentures, and preferred and common equity.
Please contact us at 312-499-5900 for more information to discuss your opportunity and to learn more about the Private Placements process.