Does the company have to be located in Massachusetts?
Most of our companies are based in Massachusetts. Many companies have operations throughout the U.S. and internationally but all have significant operations within the state. The company does not have to be incorporated in Massachusetts.
Do you invest in all industries?
We invest in most manufacturing, distribution and service businesses but do not invest in companies in the retail or financial service industries.
What is your typical investment size?
Our investments range from $500,000 to $5 million.
What is your typical transaction structure?
Most of our investments are in the form of 5-10 year fixed rate subordinated notes with equity features such as warrants. We structure investments to fit the needs of individual companies and will also invest in debt-only or equity instruments where appropriate.
What is your role with the company post-investment?
We work with management, lenders and investors to support the growth of our portfolio companies and frequently make follow-on investments as our companies’ needs change. We often act as board observers and occasionally request a seat on the company’s Board of Directors.
How long does the process take?
The length of the review, due diligence and documentation process varies but is, on average, 60 days.
Do you require an application form or a formal business plan?
A formal business plan is not necessary and Mass. Capital does not require that a proposal conform to a particular format. Most proposals include an overview of the company, the professional experience and personal background of key management, a description of the products or services, an analysis of the various markets, their size and prospects for growth, an evaluation of the competitive environment, a discussion of the company’s strategic plan, financial history and projections for a five year period, and the amount of financing required and the proposed use of the funds.