HVCI’s investment targets are companies that have recurring or repeating revenue streams with low customer concentration and low customer attrition. The focus is on industries with a structure that supports sustainable profitability and is fragmented or has other characteristics that allow small enterprises to develop good market positions. Many companies that meet these criteria have low traditional collateral. HVCI provides financing based on a company’s underlying ability to generate cash flow and not based on the traditional collateral base.
HVCI is a source of senior debt and/or subordinated debt. The financing use may include expansions, acquisitions, management buyouts, and recapitalizations (to include providing liquidity for existing shareholders). HVCI tailors the term, amortization, and covenants of the financing to best fit the strategic goals of the company. HVCI’s transaction size range is $3 million to $20 million.