Portfolio
Being selective means we don't always buy into the valuations some assets receive in the current marketplace. Although we're cautious, we're not in a holding pattern. Every year, MCG creates approximately 20 to 35 new portfolio relationships. In 2006, we moved even closer to our goal of a broad, multi-sector mix. We saw our diversified asset category climb from only 3% three years ago to 48% at March 31, 2007.
Representative Transactions
What they do: DVD rental kiosks in grocery stores.
What we saw: Significant growth from the nation's leading owner and operator.
What we did: Created a $38 million custom mix of senior and junior debt and equity to facilitate TNR's expansion.
What they do: Manufacture straws and plastic dining ware.
What we saw: A chance to invest in a stable business with a longstanding history of marquee customers and a proven ability to adapt in a changing marketplace.
What we did: Leveraged the flexibility of our capital structure—to optimize available senior debt, capture current returns through subordinated debt, and use preferred equity—to take a control stake in the business.
What they do: Operate a nationwide footprint of bulk oil distribution centers, providing cooking oil delivery and recovery systems to the restaurant industry.
What we saw: The opportunity to support the growth of a unique and patented delivery system that is transforming the industry.
What we did: Provided institutional subordinated debt capital based on enterprise value creation of mature depots while allowing ramp-up time for new depots.