Graycliff Partners – Company Profile

Mezzanine financing company overview

Mezzanine firm logo:

Graycliff Partners - mezzanine financing company logo

Headquarters location:

United States

Typical mezzanine financing range:

$5-20 million

Geographic focus:

United States and Latin America

Industry focus:

Industry agnostic

Company profile

Graycliff Partners is an independent investment firm focusing on middle market private equity and mezzanine investments in the United States and Latin America. The Graycliff team has a proven history of success, having worked together for almost two decades as part of HSBC Capital. With offices in New York and São Paulo, Graycliff seeks to partner with companies led by strong, entrepreneurial management teams, providing capital for acquisitions, management buyouts, recapitalizations, growth and expansion.

Graycliff at-a-glance

  • Core team has been investing together for approximately two decades
  • Completed in excess of 80 investments
  • Over $1 billion in assets under management
  • Global, blue-chip investor base
  • Focus on middle market private equity and mezzanine investments
  • Typical investments are in the manufacturing, service or distribution sectors
  • Focus on the US and Latin America

The Graycliff team has a long history of partnering with established management teams in growth companies with sustainable competitive advantages. Since 1991, the Graycliff Partners team, previously operating as part of HSBC Capital, has invested over $1 billion and completed in excess of 80 investments.

The firm invests across the United States and in Latin America and believes that the best returns are achieved through a partnership, where they provide a stable and solid platform from which to manage growth alongside strong, entrepreneurial management teams. They are committed to adding value to their portfolio by seeking out the best opportunities regardless of geography and putting together sensible, realistic deal structures that mitigate risk.

Graycliff Partners history overview

Graycliff Partners is an independent investment firm focusing on middle market private equity and mezzanine investments in the United States and middle market private equity investments in Latin America. In December of 2011, the former HSBC Capital team spun out to form Graycliff. The core Graycliff team has been working together for approximately two decades, first operating as Midland Montagu Private Equity and then as HSBC Capital. Headquartered in New York City, the firm’s predecessor opened an office in Sao Paulo, Brazil in 2009 to take advantage of expanding opportunities in the Latin American markets.

The Graycliff name is inspired by the image of a promontory, a point of transition and dramatic meeting of land and sea. An enduring landmark and a familiar point of reference to embark on and return from a journey, the location also provides a vantage point for a far-reaching and strategic perspective.

Investment philosophy/criteria

Graycliff Partners focuses on investing equity and mezzanine capital in middle market companies led by strong, entrepreneurial management teams. The overall investment profile of Graycliff is as follows:

  • Size Range:
    • $5 – 25 million investments
    • Revenues of at least $10 million
    • EBITDA margin of 10% or higher
  • Investment Focus:
    • Equity and/or mezzanine financing for buyouts, expansion capital, and recapitalizations
    • Management led buyouts, industry consolidations or corporate divestitures
    • Control or minority investments
    • Typical investments are in the manufacturing, service or distribution sectors
  • Investment Targets:
    • Established companies with a profitable track record
    • Significant market position
    • Diversified customer base
    • Significant barriers to entry
    • Superior earnings growth potential through competitive advantages
    • Experienced management team
    • A well-defined exit strategy
  • Geography:
    • US and Latin America

Mezzanine capital investment strategy and structure

At Graycliff, their objective is to provide mezzanine financing to companies with risk characteristics beyond what a conventional lender would normally consider, but which demonstrate strong investment potential. They are flexible in their approach and seek to partner with companies in need of financing for buyouts, expansion, recapitalizations and real estate acquisition or development.

The focus on the following situations:

  • Mezzanine financing for industry-leading companies led by experienced management teams.
  • Typical investments are in the manufacturing, service or distribution sectors
  • Investment targets have enterprise values ranging from $20 – 75 million
  • Financing for buyouts, expansion capital, recapitalizations, and real estate acquisition or development
  • Located in the United States
  • Investment Terms:
    • $5-20 million investments
    • Will partner on larger transactions

Website links

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Mezzanine Financing Page of The Company:


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