DCP is not a typical middle market or asset based lender. Corporate borrowers often turn to DCP when traditional sources of debt financing are unavailable or do not fit into the “box” of typical middle market lenders like SBIC funds, BDCs and traditional asset based or real estate lenders. Because DCP principals are themselves investors, owners and operators in a broad range of investments, DCP has the ability to recognize value beyond typical leverage ratios and easily understood assets. We seek to provide credit to help business owners and managers navigate short term challenges and opportunities by unlocking the value of their assets and expected free cash flows. Our key investment criteria:
- Types of Loans:
- Senior Secured Loans. We typically do not lend on a subordinated basis, although will consider second lien loans with good collateral coverage. DCP also provides bridge loans and side-by-side equity investments, in select situations. DCP also provides real estate, factoring and purchase order finance solutions through its subsidiary, Plus Funding Group.
- Deal Size:
- $2 million to $20 million. Larger amounts are undertaken with external syndication partners.
- In addition to typical uses such as to fund acquisitions, refinancing, and growth capital, DCP actively pursues loans used to: provide DIP financing and liquidity following a default; finance defenses to hostile takeover attempts; fund “bet the company” litigation; finance out of court restructurings; fund extraordinary inventory builds upon the winning of large purchase orders, and; provide liquidity to high net worth individuals pending the sale of luxury homes, art, or closely held businesses.
- Companies in all industries, public & private, with a proven track record (i.e. no venture capital), and ultra high net worth individuals and family owned enterprises. DCP often- works with companies and individuals that:
- ▶ have an immediate need for financing (“short fuse” situations)
▶ generate low or even negative EBITDA, or have high leverage ratios
▶ are stressed or distressed
▶ own assets that are highly structured or difficult for traditional lenders to assess
▶ have issues related to litigation, legal violations, tax disputes, or bankruptcy
▶ operate businesses with “headline” risk
- One of the key distinguishing features of DCP is our ability to consider assets of all types, both tangible and intangible, and those assets available for first lien security as well as otherwise.