Corridor Capital Introduces Non-Control Structured Equity Product

March 30, 2020 | General News, Transactions

Effective immediately, Corridor has rolled out a minority structured equity strategy to offer business owners flexible, non-control capital, coupled with our transformational operational and strategic engagement. We are actively seeking new investments whether through traditional majority acquisitions or structured, minority investments.

Flexible Investment Solutions

Corridor structured equity solutions offer owners and management teams access to:

  • Investment capital and liquidity during revenue uncertainty
  • Immediate monetization of owners’ illiquid interests
  • Infrastructure and strategic capabilities enhancement regardless of market conditions
  • Resources for opportunistic acquisitions

We understand that the world today is unpredictable and businesses face rapidly evolving challenges and opportunities that may require creative and flexible capital. Corridor can design a capital solution specific to business needs applying debt with little to no amortization, preferred equity or combinations of both. We can support both healthy businesses pursuing stability and new opportunities as well as companies which are strong but face revenue challenges during the pandemic.

Some example structural mechanisms include:

  • Preferred securities with capital used to fund a dividend to owners and / or invest directly in the business providing for owner and corporate liquidity, capitalizing the business for growth
  • Low / no amortization debt securities that minimize dilution, maximize operational flexibility and enable businesses to invest cash in growth initiatives
  • Structures balancing cash and transparent, reliable contingent consideration in order to preserve owners’ control while reducing or eliminating the impact of temporary disruptions to valuations

Collaborative Operational Support

We have a proven track record of helping our partner companies through times of volatility and uncertainty by providing capital, strategic consulting and operational support. Since our founding, Corridor has invested in and offered a deep level of engagement to our portfolio companies and management partners across periods of rapid growth, disruptive technological change, structural industry transitions and intense economic stress.

Our partnership approach evolves our portfolio companies to stronger positions than before, by developing strategies and tactics including capturing market share, applying technology or process driven productivity improvements, and pursuing and integrating add-on acquisitions.

Craig Enenstein, Corridor’s Managing Partner, shares, “We are actively investing during COVID-19 and the economic challenges and opportunities that have arisen. Corridor is systematically working with our executive teams to preserve health and wellness, and to manage business risks, optimize liquidity and seek thoughtful opportunities for growth during such an unpredictable period.”

We are prepared to move quickly and excited about participating in the value we can create together.
Corridor Investment Criteria

Investment Criteria:

  • $2mm – $8mm EBITDA
  • United States & Canada
  • Control or Minority Interests
  • Entrepreneur or founder-owned
  • Partnership oriented independent sponsors and underfunded private equity firms

Business Services Sectors of Interest:

  • Business Process Outsourcing
  • Marketing Services
  • Value-Added Distribution
  • Asset Light Manufacturing Services

We have particular experience and interest in Business Services companies with industry vertical specialization including:

  • Education
  • Financial Services
  • Food & Beverage
  • Healthcare
  • Industrial
  • Professional Services
  • Technology