Transaction Profile

Genesis provides mezzanine capital to specialty finance companies only. Typical transactions share the following characteristics:

Industry Focus: Financial Services
Transaction Size: Minimum of $1 million Maximum of $3 million in the Fund (up to $5 million with affiliates)
Term: 2 to 5 years
Repayment: Typically interest only with a balloon at maturity
Financing Purpose: Management Buyout or Recapitalization for Growth-without equity dilution
Client Management Experience: Minimum 10 years in similar business
Client Profitability: Must be profitable currently
Margins: Margins sufficient to sustain current payments and retire principal without significant growth
Client Management Commitment: Full guarantees of any owner of 20% or more of the business.
Control: Genesis does not seek a majority control position. It controls its investments through quarterly covenants, ongoing compliance reviews, and close monitoring of client performance.

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