For companies with larger funding needs, we have a network of investors in our investment vehicles which include national banks, insurance companies, family offices, foundations and high net worth individuals that are interested in co-investing alongside of us in opportunities that we lead. Although we are flexible in our investment approach and can view the right opportunity through a more creative lens, the companies that we partner with generally meet the following financial criteria:
A typical investment for us involves some combination of subordinated debt, preferred equity and/or common equity with a 5-7 year maturity. In the vast majority of our investments, our securities are recapitalized out at maturity based on a negotiated value, although in certain situations we will exit with management through a sale or IPO.
Given that we have offices in both Boston and San Francisco, we have the ability and desire to make investments located anywhere in the U.S. As a member of the Small Business Investment Company (SBIC) program, our partner companies must have at least 50% of assets and employees domiciled in the U.S. at the close of transaction.