Mezzanine Overview

RBC can provide sufficient capital to support your business or transaction, with an ability to commit up to $50 million in total financing. To build strong partnerships and diversify our risk, we may bring partners into our investments. As such, our target investment in any one company (after syndication) rarely exceeds $25 million. A typical mezzanine investment is $10 million to $20 million of mezzanine or second lien subordinated debt and a non-control equity investment of up to $3 million.

Preferred companies are North American-based with a history of stable cash flows, experienced management teams and demonstrated competitive advantages. In addition, we are strongly oriented to companies with identifiable growth prospects that can generate significant free cash flow. Sectors that we will consider include basic and growth manufacturing, business services, consumer products, healthcare and information technology services. We will also consider more challenging sectors; including restaurants, retail, and oil & gas.

The Mezzanine Fund functions as generalists and manages all its products and investments through a small, integrated deal team. Additionally, a clear streamlined credit and investment process allows us to move quickly and close transactions with as few distractions as possible. Finally, our affiliation with Royal Bank of Canada provides our clients and partners access to the global corporate finance and investment banking capabilities of RBC Capital Markets.

RBC Capital Partners also manages private equity fund investments on behalf of the Financial Sponsors Group of RBC Capital Markets. The target investment portfolio must have a strategic fit and complement the industries and clients covered by Capital Markets' Investment Banking business.