Attract Capital, LLC, known for its expertise in mezzanine finance, is expanding to the United Kingdom. The firm was founded in New York in the year 2000 to provide middle market companies direct access to the mezzanine lending market. Having grown successfully in the United States, the firm is expanding its market coverage to include the UK. According to founder, David Barnitt, the United Kingdom is an under-served mezzanine market, particularly in the lower middle market. Barnitt says, “The UK market has many great up and coming companies in need of capital to get to the next level. We believe our lending platform and structuring expertise will deliver the financing these companies need.” Barnitt continues, “Mezzanine loans are both flexible and bespoke, and can be used to fund acquisitions, rapid growth or buy-outs.” Barnitt indicated that its US- based lenders increasingly indicated an interest in seeing more deal flow out of the UK.

Attract Capital has history in the UK having assisted Tensator Ltd. the world leader in queuing products, with acquisition financing and its subsequent sale. Jeremy Williman, former owner of Tensator Ltd. states, “I have worked with Attract Capital for over 10 years. They have advised in many areas of business finance including M&A, diligence, mezzanine funding and general best practices. Throughout my affiliation with them, Attract Capital has provided exceptional service and the highest level of professional advice. David Barnitt is an exceptionally gifted adviser and delivers real value to businesses. In today’s world, capital is very hard to find. Yet, Attract Capital has delivered capital for many companies who thought it impossible to obtain.”

Attract Capital believes that its ability to source mezzanine finance will be well received by companies who are shut out of the bank loan market or find raising equity too expensive. Says Barnitt, “We have carved a strong niche in the US helping companies source flexible debt capital. We feel we can bring the same level of capital raising efficiency to UK companies.”

In the acquisition financing arena, capital availability is destiny as companies require reliable access to capital to grow over the long term. Unforeseen capital needs usually arise when acquirers least expect it. This can cause some concern for the acquisition financing provider, especially when covenants tighten up and that working capital availability is utilized faster than expected.

Mezzanine debt borrowing is usually a straightforward activity that many companies use for funding of transitional growth. Mezzanine debt lenders are highly transparent about their due diligence approach and their post-closing loan management making it easy for companies to engage with.

Elections have consequences and positive ones at that for the acquisition financing middle market. While much media attention is paid to the direction of the yield curve and the Fed’s likely rate cuts, scant attention is paid to the more important drivers of the acquisition financing market – business psychology and regulatory climate.

Expansion into the UK

What We Offer

Latest M&A Industry Updates!

Get a Free Consultation!