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 23 sub debt deals and invested a total of $29.5 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.

" SDR can Solve Your
Capital Needs,
from Top to Bottom. "

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 deep relationships with lenders.   Because we speak their language we 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 renegotiating a renewal, establishing a new relationship or looking to grow an existing relationship, we can augment your access to low-cost capital.

Equity (Finder)

In the event that 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

The SRC Group (dba Evolve)

Distribution / Uniforms and Corporate Apparel

$4.55M Top to Bottom Recapitalization

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After landing behemouth contracts with Chipotle and Qwest, Evolve founder Joel Wochner found himself in a unique predicament: his growth had outstripped his ability to fund additional future growth. At Joel's request, SDR stepped in and recalibrated Evolve's capital stack to better position the company to service current and future large clients.

SDR initially sourced a new senior lender that better understood the needs and seasonality of the business. Simultaneously, SDR principally invested growth capital in the form of subordinated debt. Shortly, thereafter SDR sourced a new equity partner as part of a minority recapitalization. Finally, when investor timing and client needs failed to align, SDR principally led a bridge financing round to align all parties.