FOR INVESTORS & SPONSORS
Capital solutions for investors who move with conviction.
Aparti Capital advises investors and sponsors on structuring and sourcing acquisition financing, recapitalization capital, and tailored financing solutions for lower middle market transactions.
CAPITAL ADVISORY FOR INVESTORS & SPONSORS
Financing strategy begins before the transaction closes.
For independent sponsors and investment groups, the capital structure affects purchase price flexibility, closing certainty, post-close liquidity, and long-term returns. Financing must fit both the transaction and the underlying business.
We evaluate the target’s sustainable cash flow, collateral, working capital, acquisition terms, and sponsor capitalization to identify viable financing structures before approaching capital providers.
01
Transaction Economics
Evaluate purchase price, sustainable earnings, debt capacity, and the transaction’s ability to support financing.
02
Sources & Uses
Assess sponsor equity, senior debt, asset-based facilities, seller financing, and junior capital requirements.
03
Downside Protection
Consider covenant headroom, working capital, liquidity, and refinancing risk under less favorable outcomes.
04
Execution Readiness
Identify diligence requirements, lender fit, financing timelines, and the conditions required for closing.
HOW WE ADVISE INVESTORS & SPONSORS
Capital solutions built around the transaction.
We help sponsors evaluate financing alternatives, prepare a credible investment and credit case, and engage capital providers whose mandates fit the business and transaction.
Platform Acquisition Financing
Structuring senior, asset-based, seller, and other financing sources for new platform acquisitions.
Add-On Acquisition Financing
Evaluating incremental borrowing capacity and capital structure options for acquisitions by existing portfolio companies.
Debt & Capital Markets
Assessing cash-flow lending, asset-based facilities, equipment financing, and private credit alternatives.
Leveraged Recapitalizations
Evaluating financing for shareholder liquidity, refinancing, and recapitalizations of portfolio businesses.
Structured & Junior Capital
Considering subordinated debt, preferred capital, and other structures when senior financing alone is insufficient.
Bridge & Special Situations
Exploring transitional financing or tailored structures for timing-sensitive and complex transactions.
OUR APPROACH
Underwrite the business. Structure the capital. Execute with discipline.
An attractive acquisition is not automatically a financeable acquisition. We assess the target’s cash generation, reinvestment needs, working capital, collateral, leverage tolerance, and the sponsor’s available capital before determining an appropriate approach.
Aparti Capital acts as an independent advisor not a direct lender or equity provider. Our role is to help investors understand structural trade-offs, present the transaction clearly, and navigate financing negotiations and diligence.
WHEN SPONSORS ENGAGE US
Financing for pivotal moments in the investment lifecycle.
From an initial platform investment through add-on acquisitions and recapitalizations, we advise on financing decisions that can materially influence execution and portfolio flexibility.
Platform Acquisitions
Sourcing acquisition financing for a new lower middle market investment or independent sponsor transaction.
Add-On Acquisitions
Evaluating acquisition capacity and incremental financing for portfolio company expansion.
Refinancing Portfolio Debt
Addressing maturities, covenant pressure, changing lender requirements, or opportunities to improve financing terms.
Shareholder & Sponsor Liquidity
Considering dividend recapitalizations, partner liquidity, and structured financing while preserving operational flexibility.
Complex or Time-Sensitive Transactions
Assessing financing alternatives for unusual collateral profiles, compressed timelines, or transitional credit circumstances.
HOW WE WORK
From initial underwriting to financing execution.
Our process aligns financing strategy with the transaction timeline, sponsor objectives, and the requirements of prospective lenders and capital partners.
01
Screen
Review the target business, transaction structure, sponsor capitalization, and proposed financing requirement.
02
Underwrite
Assess sustainable cash flow, debt service capacity, collateral, working capital, and downside scenarios.
03
Structure
Compare senior debt, asset-based facilities, seller notes, and other potential capital sources.
04
Engage & Negotiate
Prepare financing materials, identify suitable capital providers, and assess indications and proposed terms.
05
Execute
Support financing diligence, negotiations, documentation, and coordination through closing.
FREQUENTLY ASKED QUESTIONS
Questions investors and sponsors often ask.
Does Aparti Capital work with independent sponsors?
Yes. We advise independent sponsors and other investment groups on acquisition financing and related capital structure decisions, subject to transaction fit and financing feasibility.
What financing structures can support a lower middle market acquisition?
Depending on the business, potential sources include senior cash-flow debt, asset-based lending, equipment financing, seller notes, private credit, and sponsor equity. The appropriate mix depends on cash flow, collateral, working capital, and transaction terms.
Can an acquisition be financed with limited sponsor equity?
Some transactions may support lower sponsor equity through collateral-backed financing or seller participation, but the outcome depends on lender requirements, the quality of earnings, available assets, and risk allocation. No equity level or financing outcome can be guaranteed.
When should we begin arranging acquisition financing?
Ideally during early underwriting and before finalizing transaction terms. Early financing analysis can surface debt capacity, collateral limitations, working capital requirements, and execution risks before exclusivity or closing.
Does Aparti Capital invest in or lend to these transactions?
This advisory service does not provide direct financing. Aparti Capital advises on capital structures and helps clients engage third-party lenders and capital providers.
PERSPECTIVES & INSIGHTS
Research for disciplined investors and sponsors.
Perspectives on acquisition financing, debt capacity, capital structures, and lower middle market transaction execution.
ACQUISITION FINANCING
How Much Debt Can an Acquisition Support?
Evaluating cash flow, debt service, collateral, and working capital in an acquisition.
CAPITAL STRUCTURE
Understanding the Acquisition Capital Stack
How senior debt, asset-based lending, seller financing, and junior capital can work together.
INDEPENDENT SPONSORS
Financing a Lower Middle Market Acquisition
Key considerations for sponsors preparing to source financing for a platform transaction.
START A CONVERSATION
Evaluating an investment? Let’s discuss the capital structure.
Share an overview of the transaction, the target business, and the financing requirement. We can assess whether an initial advisory conversation is appropriate.