AMC Funds believes in flexible financing solutions with a partnership approach
Through their investments they aim to unlock value for their investors, portfolio companies and wider communities
Overview
AMC Funds invests in closed ended Mezzanine funds that provide tailored financing solutions to established mid-market businesses and small and medium enterprises, with a focus on Central Europe.
INSTRUMENT
A subordinated loan, equity co-investment possible
- Long-term flexible debt
- Moderate cash burden on the company
- Bullet repayment at maturity/exit
- Alignment of interest with shareholders through equity upside
First ranking seniority to provide structural protection
RANKING
Positioned between senior lenders and equity
- Subordinated to senior lenders in terms of security and cash payments, both interest and principal repayment
- Maturities extend beyond senior facilities
Financial covenants to limit downside risk
RETURN
Priced between senior debt and equity returns
- Current interest income
- Participation in the economic value of the borrower at exit via warrants and equity co-investments
- Put option to structure liquidity events for AMC
Cash coupons as compensation for risk