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Capital Raising

Lenox professionals have significant experience in raising and structuring private capital and have deep, long-standing relationships with institutional providers of debt and equity. Lenox has successfully raised hundreds of millions of dollars of senior debt, mezzanine (subordinated) debt and institutional equity on a majority or minority basis.

As part of our process, Lenox will:

  • Work with clients prior to going to market to understand fully the capital need and the strategic vision of the shareholders
  • Outline the company’s options regarding the form of capital (debt or equity) and the benefits and challenges of each
  • Determine the expected valuation range and market terms
  • Create marketing materials and detailed financial model
  • Contact a wide array of capital sources through our network
  • Structure and negotiate the capital solution that best meets the clients needs

Debt Capital

Companies have engaged Lenox to raise debt capital for a variety of reasons including:

  • Shareholder liquidity
  • Refinancing of existing debt
  • Capital expansion supporting organic growth and acquisition financing.

Raising debt capital can be accomplished through a traditional bank or private debt. Often with private debt, the capital provider will also serve as a resource to a Company to grow. Mezzanine debt or junior capital providers can partner with a company to scale the organization and provide non-amortizing debt that allows more flexibility for growth.

While each situation is different, the commonality for clients generally has been the need for additional capital to grow.

Equity Capital

Lenox has also advised companies in raising institutional equity both for growth as well as shareholder liquidity goals.

Many of the shareholder liquidity transactions have centered around generational change issues. In these instances, Lenox has executed recapitalizations whereby shareholders get partial liquidity but continue to operate the business going forward with a financial partner.

A recapitalization occurs when a business owner sells a percentage ownership (generally between 40%-80%) of his or her company to a private equity sponsor and retains a meaningful ownership interest.

  • This allows the owner to continue running the company day-to-day, invest the proceeds of the sale (“take some chips off the table” in the form of cash) thus, diversifying his or her net worth and maintain upside in a business which now has a partner with deep pockets and an interest in growing the business.
  • The owner’s operational role does not change as most sponsor groups are not interested in operating a company but can bring significant outside relationships to assist in the company’s growth.

Over the years, we have continually counseled our clients that all the institutions have money but there must be a cultural fit between the provider and the shareholders and a shared vision for the company.