Institutional Lending | Equity
C3 Capital, LLC, based in Kansas City, MO, manages two funds (C3 Capital Partners I and II) with approximately $250 million in assets that provide capital for businesses to finance later stage growth, strategic acquisitions, ownership transitions, and recapitalizations. The funds make $2 million to $10 million investments in the form of subordinated debt or preferred equity in established businesses with a history of profitability. The funds are licensed as Small Business Investment Companies.
C3 provides the layer of a company's capital structure between senior debt and common equity, often referred to as "mezzanine" capital. For companies with a track record of profitability that cannot obtain desired levels of bank financing, raising mezzanine capital is frequently a superior alternative to raising additional common equity since mezzanine:
· is typically 1/3 less expensive than common equity
· is far less dilutive than common equity
· enables existing owners to maintain control
· unlike common equity, does not require a forced sale of the company at the time of repayment/redemption
C3's Principals all have experience building and managing businesses, in addition to over 70 years of collective private equity investment experience. We understand the needs of small businesses from the perspectives of both owners and managers, and have a history of creating partnerships to promote the growth and success of the companies in which we invest.
