Available Forms of Financing
Senior debt is a flexible form of financing that serves as an alternative to traditional bank loans. It allows for raising capital in a short period – on average within 5 weeks from the start of the process. Key features of senior debt financing include:
Minimum funding amount
from PLN 2 million
Use of funds
investments, company acquisitions, refinancing of existing debt, working capital
Principal repayment
in installments or as a lump sum at the end of the financing term
Financing term
typically up to 2 years
Collateral
mortgage, company assets, pledge on shares, guarantees, etc.
Subordinated Debt
Subordinated debt is a type of financing that complements traditional bank funding. It is characterized by a lower repayment and collateral priority compared to other creditors. Key features of subordinated debt financing include:
Minimum funding amount
from PLN 2 million
Use of funds
business development, acquisitions, working capital, share buybacks
Investment horizon
up to 3 years, with an option for bullet repayment at maturity
Debt characteristics
subordinated to other forms of financing in terms of repayment and collateral
Mezzanine debt
Mezzanine debt is flexible hybrid financing for projects with an elevated risk profile. The repayment of this financing may come from share sales, asset disposals, or the sale of the entire company. Key features of mezzanine debt financing:
Use of funds
investment projects, acquisitions, share buybacks, restructuring
Investment horizon
typically up to 5 years
Principal repayment
usually as a lump sum at the end of the financing period, with optional partial settlement through warrants or other equity-like instruments
Convertible Debt and Capital
Convertible debt is a form of financing that combines the characteristics of debt and equity. It functions like a traditional loan or bond, but includes an option (or obligation) to convert the debt into company shares or equity.
We can also engage in direct equity investments (shares or stock). We typically take minority stakes. We respect the independence of company owners while supporting the company’s strategic growth.
Investment horizon
from 2 to 5 years
Investment capital
from several to several dozen million PLN
Exit strategy
agreed upon with consideration for the owners’ needs and the company’s growth strategy