Capital Formation

Designing and implementing a capital stack that supports shareholder goals and facilitates growth requires an expert guide. We can assist you in designing, evaluating, and executing a capital strategy that is optimal for you and your firm.

Subordinated and Mezzanine Debt (Principal and Finder)

In 2008 we established a dedicated fund, committed to providing liquidity to privately held companies across the Front Range of Colorado. To-date we have funded 37 sub debt deals and invested over $35 million. Generally speaking, we prefer to invest $200,000 to $2,000,000, per transaction, in opportunity-driven businesses.

In the event that your needs do not match our Fund's directives, we can leverage our relationships in the subordinated and mezzanine debt community and source competitive term sheets to meet your growth capital needs.



Senior Debt (Placement Agent)

In an environment where credit is no longer a commodity and the relationship has been removed from relationship banking, many good companies are having difficulty securing proper senior financing. Fortunately, there is hope. SDR's deep experience in the retail banking world, our position in the privately held marketplace, and our underwriting standards have solidified and strengthened our already profound relationships with lenders. We speak their language and have the ability to translate your business model and capital needs in a way that lenders, and their credit committees, understand. Whether your company is negotiating a renewal, establishing a new relationship or looking to grow an existing relationship, we can augment your access to low-cost capital.



Equity (Finder)

If our debt solutions are not a fit for your strategic goals, we do act as finder for equity capital. SDR's equity raising process is tailored to each client's specific needs and is designed to spark a competitive process that generates multiple options and favorable terms.

Featured Case Study - Capital Formation Finder

HealthTran LLC

Pharmacy Benefit Management

Two Bites, One Apple

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HealthTran LLC (“HealthTrans”), a Privately Held Pharmacy Benefit Manager (“PBM”) had a history of steady expansion and was looking to accelerate growth by raising capital for future acquisitions in the healthcare management solutions industry while reducing shareholder risk by selling a minority equity position. Because of its long standing relationship, HealthTrans requested help from SDR to complete a minority recapitalization.

SDR’s capital formation process identified ABRY Partners, a private equity investment firm focused on media, communications, business and information services investments, as the best provider of the equity capital needed for the minority recap. SDR served as the exclusive financial advisor to HealthTrans in arranging the financing.

HealthTrans engaged SDR to execute on the acquisition strategy in 2011; however, after a few months in the marketplace, SDR and HealthTrans concluded that existing market conditions were better suited for an exit. In January of 2012, SDR’s facilitation of a sale to SXC Health Solutions was completed for $250 million, allowing the HealthTrans shareholders to achieve a second bite at the apple in less than 2 years.

Featured Case Study - Capital Formation Principal

All Copy Products

Business Technology Solutions

$4.1 Million Loaned Over 10 Years

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All Copy Products, Inc. is a Colorado-based equipment distributor. All Copy offers technology products for copying, scanning, faxing, postage metering, data archiving, electronic filing and storage solutions, as well as equipment, service, support and supplies. The company is known for its commitment to providing world class customer service to its clients.

SDR Ventures has maintained a relationship with All Copy since 2002. Throughout this period of time SDR underwrote and serviced four subordinated debt loans and served as financial advisor for one acquisition. SDR served as financing principal on these loans ranging from $750,000 to $1,500,000 to facilitate the growth of the company. Today All Copy is an award winning company that is on the leading edge of providing business technology solutions with the help of SDR’s financing and acquisition advisory services.

In the Words of Our Clients...