Our Investment Focus
Mezzanine financing – which is typically structured as a non-amortizing term facility – provides flexibility in cash flow management and is a cost effective alternative to raising additional equity to finance transformational events, including:
- Growth capital
- Financial sponsor buyouts
- Shareholder buyouts
- Management buyouts
- Equity withdrawals (Dividend Recapitalizations)
RBC Mezzanine Finance can work together with our RBC senior debt partners to provide mid-market companies and financial sponsors with a comprehensive financing solution to facilitate transactions.
Mezzanine investments range from $3 million to $20 million in any single transaction, plus the ability to partner on larger transactions.
Our Investment Criteria
RBC Mezzanine Finance is seeking investment opportunities in businesses in a variety of industries* that have some or all of the following characteristics:
- Proven and sustainable free cash flows, with EBITDA typically exceeding $3 million, and an Enterprise Value greater than $10 million
- Strong management teams with a significant financial commitment (“at-risk” capital)
- Established track record of business plan execution
- Operate in market niches and possess a sustainable competitive advantage
- Based in Canada and/or the U.S.
*excluding real estate and natural resource extraction
Patrick has over 20 years of mezzanine investment and merchant banking experience. He joined RBC in 2007 from CCFL Mezzanine Partners and was previously with McKenna Gale Capital, two leading independent mezzanine funds. Patrick also spent time in business development and as a university lecturer. Patrick is a Chartered Financial Analyst, and has an MBA from Saint Mary’s University.
Joe is responsible for sourcing and executing junior capital investments. Prior to joining RBC, Joe was a Vice-President with KPMG Corporate Finance. During his career, Joe has acted as a principal investor or advisor on more than 25 completed transactions with a combined value of greater than $1 billion. He has executed a variety of transactions for boards and shareholders, including mergers and acquisitions, fairness opinions, private placements and strategic alternatives assignments. Prior to KPMG Joe worked in the equity research team at Merrill Lynch. Joe holds the Chartered Accountant and Chartered Financial Analyst designations.
Steve is responsible for sourcing and executing junior capital investments. Prior to joining RBC, Steve was a Partner and Senior Vice President at Ernst & Young Orenda Corporate Finance. Steve spent over 25 years at EY during which he co-founded the Canadian capital markets advisory business. He has led hundreds of transactions in a variety of industries involving many forms of financing and capital structures. Steve holds an MBA from McMaster University as well as the Chartered Professional Accountant designation.
Mark is responsible for sourcing and executing junior capital investments. Since joining RBC in 2011, Mark has completed 18 Canadian and U.S. based mezzanine transactions. Prior to RBC, Mark worked in the investment banking group at TD Securities Inc. where he was involved in a number of mergers & acquisitions, debt and equity financings, and initial public offerings with a focus on real estate and gaming. Mark graduated from the Richard Ivey School of Business with an HBA with distinction.
Cale is responsible for sourcing and executing junior capital investments. Cale joined the RBC Mezzanine Finance group in 2017. Prior to joining RBC, Cale worked for more than three years in the Corporate Finance group at EY where he advised middle-market clients, across a broad spectrum of industries, on mergers, acquisitions, divestitures and capital raising activities. Previously to that, Cale spent a number of years working in EY’s Assurance practice. Cale holds a Bachelor of Commerce degree, from the University of Alberta and holds the Chartered Accountant and Chartered Professional Accountant designations.