Harbert Management Corporation – Company Profile

Mezzanine financing company overview

Mezzanine firm logo:

Harbert Management Corporation - mezzanine financing company logo

Headquarters location:

United States

Typical mezzanine financing range:

$3 million - $15 million

Geographic focus:

Global

Industry focus:

Industry agnostic

Company profile

HMC is an independent investment firm focused on fundamentally-based private and public market strategies. They seek investments forecasted to yield mid- to high-teen returns. Their mission is to provide strong and consistent returns to help their clients meet their investment objectives and preserve initial investment capital. They are opportunistic investors who invest alongside their clients on equal terms and conditions.

HMC are first and foremost an investor in their own strategies. They suggest no investment to their co-investors unless HMC’s or its affiliates’ capital is also committed. They believe that fact alone is the best measure of their confidence in their ability to source, close, develop and exit transactions profitably.

The firm’s principles are:

  • Fundamental research drives their entrepreneurial approach to investing in both private and public markets, and has done so for over 20 years.
  • Their disciplined approach to managing downside risk is critical to preservation of capital.
  • Their institutional-quality operational infrastructure provides their clients with the appropriate level of transparency across all strategies.
  • They maintain true alignment with their clients through the substantial commitment of HMC partner capital – on equal terms and conditions as all their clients.

Each asset class has a discrete and dedicated team of investment professionals with the experience and contacts to locate and analyze available investment opportunities. HMC’s investment teams are located in Birmingham, Alabama; New York, New York; Atlanta, Georgia; Dallas, Texas; Nashville, Tennessee; Richmond, Virginia; San Francisco, California; and globally in London, England; Melbourne, Australia; Madrid, Spain; and Paris, France – close to the relevant markets for their respective strategies.

Since they formed their first real estate fund in 1995, they have attracted investors from many sectors, including endowments and foundations, funds of funds, family offices, pension funds, financial institutions, insurance companies and high net worth individuals.

Investment philosophy/criteria

The firm makes investment decisions only after methodical assessment, with an instinctive bent toward bold moves tempered by common sense, experience and, most of all, discipline. They invest in a variety of asset classes to build a portfolio with a composition that they believe balances risk and return.

The mezzanine capital group provides financing to private middle market companies. They seek investment opportunities where they believe the risk of principal loss is limited and the prospective equity appreciation is high. They also seek long-term returns competitive with those of venture capital and private equity transactions.

Preferred investment structure for mezzanine capital has the following characteristics:

  • Size $3 million to $15 million
  • Senior subordinated debt
  • Five-year term; no amortization; interest monthly
  • 13% to 14% coupon
  • Nominally priced warrants to purchase equity

Website links

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