EPIS, a power market forecasting software company, successfully exited its mezzanine loan funding with HCAP Partners (formerly Huntington Capital). The financing was used to help the current shareholders diversify their holdings and recapitalize the stock in support of new employee ownership.

EPIS is software development company serving the wholesale-electric power industry. Its software enables customers to measure value at risk and examine uncertainties around demand, fuel prices, transmission constraints, hydro conditions and other variables.

HCAP Partners invested $4.5 million into EPIS via a mezzanine loan as part of a recapitalization of shareholder stock in 2014 and 2015. The investment helped support new employee ownership while providing diversification to the original founders of the firm. HCAP Partners’ mezzanine debt was repaid earlier this year. Frank Mora, principal, and Nicolas Lopez, senior associate, led the deal for the firm.

“We enjoyed working closely with the management team at EPIS over the past couple of years and we are pleased with the success of the investment. EPIS is poised to continue to capitalize on its positioning in the power industry and we look forward to watching the company grow,” said Mora.

“Our experience with HCAP Partners has been exceptional,” said Ben Thompson, CEO of EPIS. “They really made an effort to understand our business and several on their team provided important guidance throughout our partnership. We are very happy to have had the opportunity to work with them.”

HCAP Partners is a provider of mezzanine debt and private equity for underserved, lower-middle market companies throughout California and the Western U.S.