MCA provides flexible, private investment solutions tailored to meet the needs of lower, middle market businesses, whose access to traditional bank financing is limited or unavailable. Our investment solutions include term debt, equity and factoring.
MCA provides flexible term debt solutions to lower, middle market operating businesses through our dedicated private debt funds, Montgomery Capital Partners I, LP, Montgomery Capital Partners II, LP and Montgomery Capital Partners III, LP (MCP). MCP I and MCP II are currently returning capital and no longer investing, while MCP III is our most recent fund and currently investing. Typical loan sizes are $750,000 - $2,000,000 and usually have a 3 year term and 5 year amortization. MCP generally takes a first lien, secured position in a company's assets but does selectively consider subordinated debt opportunities. In addition, in most term loans MCP separately purchases a warrant for equity ownership that can be repurchased by the borrower when the loan is repaid. MCA takes an active role in working with company management on operations, strategy and execution.
MCA makes select, direct equity investments, along with our investment partners, in lower, middle market operating entities. Investment is typically $500,000 - $3,000,000 and structured as a preferred equity interest with flexible terms designed to meet both company and investor requirements. In most cases, MCA takes a controlling interest but terms often allow for owner-operators to "claw-back" majority ownership based on company performance and investor return metrics. MCA takes an active role in working with and supporting all of our portfolio companies at both the Management and Board levels.
MCA provides accounts receivable and purchase order financing through MCA Financial Solutions, LLC. Our primary focus is on high-dollar, low-volume invoice and PO transactions where the required financing need is $250,000 to $1,000,000. Terms are standard for factor financing but MCA Financial Solutions has the flexibility to consider non-standard factor transactions and unique deal structures for businesses that may not fit into a traditional factoring solution.
MCA can lead or participate in select, one-off financing transactions where unique and flexible deal structures are needed. Financing vehicle can be debt, equity or a combination of both, with direct investment up to $1.5 million and in participations up to $10 million.