Caltius Structured Capital provided dividend solutions to two co-founders of a growing technology services company, a private equity sponsor and the shareholder and management team of a technology company.
The two co-founders of the growing technology services company sought a liquidity event to diversify their net worths without selling or giving up company control. Caltius engaged with the two individuals to understand their objectives and ultimately provided a debt solution with an attached warrant to deliver a dividend to the owners and refinance existing debt.
The private equity sponsor was five years into their hold period and had created significant enterprise value in a portfolio company in the distribution sector. Given the strong growth prospects but weakening M&A environment, the sponsor did not want to sell the business but desired a partial realization to return capital to their limited partners while remaining the controlling shareholder. Caltius provided subordinated debt along with a bank’s senior debt facility to deliver a dividend and partial realization for the sponsor.
After hiring an investment bank to run a sale process, the majority shareholder and management team of a technology company decide to pivot and instead execute on growth initiatives, grow EBITDA and maximize value before selling the company. The shareholder group still wanted some near-term liquidity and approached Caltius to deliver a solution. Caltius provided a combination of subordinated debt and preferred equity to fund a shareholder dividend.
