Whether it is a business partner who desires an exit or a consortium of inactive, passive shareholders seeking liquidity, Caltius provides capital that’s more patient than traditional senior debt and less dilutive than common equity. The end result is you own more of your company.
Recent Caltius Investments:
- Situation: Founded by a father (60% owner) along with his son and business partner (40% owners). The son was CEO and active in all aspects of the business. The father desired personal liquidity.
- Solution: Caltius provided subordinated debt and preferred stock to acquire the father’s shares, refinance existing debt and provide liquidity for growth. The son and business partner became the controlling shareholders post close.
- Situation: A company was founded by two 50/50 business partners. One partner was running day-to-day operations as CEO and the other was not actively involved.
- Solution: Caltius provided subordinated debt to help finance the purchase of the inactive owner, resulting in 100% ownership for the CEO.
- Situation: A company founded by five high school friends, each with equal ownership stakes. One founder became the clear leader running the day-to-day operations, with the others becoming more passive owners.
- Solution: Caltius provided subordinated debt and preferred stock to help finance a management buyout led by the key owner in which the ownership of the four passive founders was redeemed, resulting in controlling ownership for the CEO and his management team.
- Situation: A company founded in 1960’s by an entrepreneur whose wife inherited the business after his death. The wife subsequently sold the business to a group of investors. One of the investors became CEO and active manager of the business, with the others being passive investors.
- Solution: Caltius provided subordinated debt and preferred stock to help the CEO buyout the minority investors and become the controlling shareholder of the business.