November 17, 2022

Trive Structured Capital | Helping Navigate Uncertain Times

DALLAS, Texas

As inflationary pressures persist and interest rates rise, the macro environment remains challenging with an increasingly uncertain outlook.  During these times, traditional financing sources tend to take on a more conservative approach, decreasing their appetite for leverage and prolonging underwriting processes.

With a flexible mandate and fully-committed capital in our dedicated Fund I, Trive Structured Capital remains focused on partnering with teams and investing through the current environment when traditional sources of financing may not be available.

Balance Sheet Support

In a rising interest rate environment, debt service can create added pressure on management teams looking to execute on operational initiatives and weather the current macro climate.  Trive Structured Capital can be a value-added resource, providing flexible and patient debt or equity capital to refinance debt obligations, reduce cash interest expense and/or provide covenant relief to quality businesses with strained balance sheets.

Liquidity and Operating Runway

Trive’s Structured Capital mandate does not require cash interest, instead providing management teams the opportunity to preserve liquidity or reinvest proceeds back into the business.  Trive is focused on generating a return through long-term value creation (vs. capturing an outsized, contractual cash pay coupon), creating better alignment of incentives with owners and management stakeholders.  Through partnering with Trive, partner companies can preserve operating runway in the current environment while adding a trusted resource to help drive shareholder value.

Partial Realizations

For business owners that were previously contemplating a sale but are reluctant to do so in the current market, Trive can provide partial liquidity to owners through a dividend recap, secondary sale, or growth capital raise.  In such instances, Trive can provide operating and strategic support to help position the business for an optimal exit when overall economic conditions improve.

About Trive Structured Capital

From special situation credit to non-control equity capital, Trive has the ability to create flexible capital solutions for companies seeking a value-added partner with the resources and mindset to effect real change.

 

Investment Criteria | Trive Structured Capital

Trive’s Structured Capital Strategy specializes in creating bespoke, tailored capital solutions to companies at or near an inflection point.  Our focus, agnostic to capital structure, is the needs of the business, existing shareholders and management teams – allowing stakeholders to achieve their unique goals while maintaining meaningful upside and control.  Trive invests with a hands-on, operational approach, seeking to form meaningful and collaborative partnerships with key stakeholders and those driving value.

Trive is actively seeking to invest $10 to $250M of debt or equity into currently or historically profitable family or institutionally owned businesses.

 

Security Types

  • Senior Debt (special situations)
  • Junior Debt
  • Preferred Equity (with lower long-term dilution)
  • Common Equity (non-control)

Transaction Types

  • Minority Recapitalizations
  • Growth Capital
  • Distressed/Balance Sheet Issues
  • Failed Sale/Capital Raise Processes
  • Management Buyouts
  • Stretch Leverage
  • Acquisition Financing
  • Independent Sponsors

 

If you would like to discuss a potential Structured Capital opportunity, please contact us at structuredcapital@trivecapital.com


About Trive

Trive Capital is a Dallas, Texas based private equity firm with more than $7 billion of regulatory assets under management. Trive focuses on investing equity and debt in what it sees as strategically viable middle-market companies with the potential for transformational upside through operational improvement. We seek to maximize returns through a hands-on partnership that calls for identifying and implementing value creation ideas.

The Trive team is comprised of seasoned investment professionals who have been involved in over 100 middle-market transactions representing in excess of $6 billion in revenue across Trive’s targeted industry sectors and situations.

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