F.N.B. Capital Corporation – Company Profile

Mezzanine financing company overview

Mezzanine firm logo:

F.N.B. Capital Corporation - mezzanine financing company logo

Headquarters location:

United States

Typical mezzanine financing range:

$3 - $10 Million

Geographic focus:

United States (East of the Mississippi River)

Industry focus:

Manufacturing, Plastics, Specialty distribution, Technology / IT, Specialty and healthcare services, Defense / Forensics, Engineered components, Food/Staples, Service. No real estate adventures.

Company profile

F.N.B. Capital Partners is a $175,000,000 SBIC investment fund based in Pittsburgh, PA. They provide flexible capital financing solutions through mezzanine financing and private equity and tailor transactions to create long-term value for companies. They partner with equity sponsors, management teams and business owners to pursue leveraged buyouts, management buyouts, acquisitions, growth initiatives and recapitalization. Their investment size is $3,000,000 – $10,000,000 per transaction and the companies they finance have revenues of $8,000,000 – $100,000,000 and EBITDA of at least $2,000,000.

F.N.B. Capital Partners became SBIC licensed in August 2013. They provide small and middle market owners, sellers and managers flexible capital financing solutions through subordinated debt and private equity. They partner with small to mid-size companies by providing experience and knowledge in structured loans and investments, while tailoring transactions to create long-term value for companies.

F.N.B. Capital Partners’ geographic footprint lies east of the Mississippi River with a focus in the Midwest, Southeast and Mid-Atlantic regions. F.N.B. Capital Partners looks to place between $3,000,000 and $10,000,000 (with the ability to invest more with partners) in subordinated debt and/or preferred equity to help mature or emerging companies who are seeking financial capital for:

  • Management and Partnership Buyouts
  • Corporate Divestiture
  • Growth Capital
  • Acquisition Financing
  • Leveraged Buyouts

Mission, vision and core values

MISSION STATEMENT: To invest time, talent and capital with small and middle market enterprises through the commitment of trusted relationships, experience and flexible capital in the form of subordinated debt and private equity. By offering access to capital solutions, their fund will embody their core strategy of fostering growth and building wealth for their portfolio companies and their investors.

VISION STATEMENT: the vision is to be a leading source of flexible capital for small and middle market businesses by creating value for their customers, investors, employees and their community.

CORE VALUES:

  • Integrity – earned by acting responsibly, timely, doing the right thing and treating people fairly and with respect.
  • Teamwork – working together as employees, partners, investors and customers to achieve success and growth.
  • Winning – foster and embrace win-win scenarios, reacting quickly and being flexible and responsive to the needs of the markets.
  • Innovation – performing with creativity and flexibility and maximizing efficiencies through technology and change.
  • Respect – keeping a good reputation, adherence to compliance and regulations and understanding the responsibilities to the investors and clients.

 

Tecum Capital Management

Tecum Capital Management is a private investment firm, which serves as the management company for F.N.B. Capital. Tecum is the Latin adverb meaning “with you”.

It is also an abbreviation for Tecumseh, a great American Indian (1768-1813), who was a leader of the Indian alliance originating from the Ohio River Valley. Tecumseh was a legendary warrior, who earned respect for both moral courage and living an uncompromising ethical life. Tecumseh was born in Chillicothe, Ohio, his name meaning shooting star. He built his reputation as a quick thinker and overcoming any odds. He was a skillful diplomat and excellent negotiator, who defended his native lands from unruly expansion and occupation. He was known for unflagging energy, dedication and vision.

Our team has adopted the Tecum name for its literal meaning as synonymous with “partnering” and as an abbreviation for a great Native American, who represented high energy, integrity, dedication and commitment to his Ohio Valley homelands, which are all part of their team’s core values and focus.

Investment philosophy/criteria

Profile of target investment is as follows:

  • Company characteristics:
    • $8 – $100 million of revenue
    • EBITDA margins of at least 10%
    • Historical profitability or growth
    • Stable and/or growing markets
    • Geography: East of the Mississippi River
    • $2 million of EBITDA or greater
    • Experienced management team
    • Strong market position
    • No start-ups or project financing
    • No real estate ventures
  • Investment size:
    • $3 – $10 Million Investment Size
  • Structure:
    • Mezzanine Debt / Subordinated Notes
    • Equity Co-Investments
    • Minority Equity Investments
  • Transactions Types:
    • Leveraged Buyouts
    • Management Buyouts (MBO +)
    • Intergenerational Transfers
    • Equity Sponsor Buyouts
    • Strategic Acquisitions
    • Growth Capital
    • Recapitalizations & Dividend Recaps
    • Non-Sponsored Search Funds
  • Industries where they experience and interest investing in:
    • Manufacturing
    • Plastics
    • Specialty distribution
    • Technology / IT
    • Specialty and healthcare services
    • Defense / Forensics
    • Engineered components
    • Food/Staples
    • Service

The investment process typically follows the steps as outlined below:

  1. Initial Review
  2. Meeting and/or conference call with management, owners or sponsor
  3. The fund provides you a summary of terms
  4. On site visit / initial Due Diligence
  5. Letter of Interest / Term Sheet
  6. Due Diligence
  7. Commitment Letter / Final Due Diligence
  8. Legal documentation / Closing
  9. Support your strategic plan

Website links

Company Home Page Link:

Mezzanine Financing Page of The Company:


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