At North Atlantic Capital, we provide growth capital to innovative technology companies across the United States. Founded in 1986 and based in Portland, Maine, we are currently investing our fifth fund, which is capitalized at more than $123 million. Our initial investments are structured as subordinated debt with warrants or equity features, and typically range between $5 million and $10 million.
More Flexible than Debt. Less Costly than Equity. Structured Debt Features
Our structured debt offering has several attractive characteristics for rapidly growing businesses seeking patient risk capital:
• No financial covenants
• Six-year term with no principal payments due until maturity
• Fixed interest rate for term of the loan
• Deeply subordinated to senior working capital loans
Our pricing compares very favorably to equity financings, and our structure is far more flexible than traditional venture debt. Typical Applications
North Atlantic’s structured debt has been utilized in the following situations:
• As final growth capital raised in anticipation of an exit
• To provide founder or shareholder liquidity
• To refinance existing mezzanine or venture debt that is amortizing
• To finance acquisitions
