In this episode of Capitala Conversations, Capitala Group Founder and CEO Joe Alala III is joined by Tom Kenary of Houlihan Lokey's Capital Solutions Group to break down a deal process once an independent sponsor has signed a letter of intent. From attracting the right partners, to raising the money needed to close and building the capital stack.
Alongside host Sam Tidswell-Norrish, Founder and Chair of Independent Sponsor News, they walk through a hypothetical deal layer by layer, covering the balance between debt and equity, seller rollover and alignment, and when to bring in a capital advisor. They also discuss current market terms, what makes a sponsor and a deal stand out to investors, and where the lower middle-market is headed over the next 12 months.

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Disclaimer: The views expressed are those of the speakers as of the recording date and are subject to change without notice. Statements regarding portfolio companies, investment opportunities, market conditions, or future expectations are based on current assumptions and involve risks and uncertainties. References to specific investments are provided for illustrative purposes only and are not representative of all investments made by the firm. Past performance does not guarantee future results. Nothing contained herein constitutes investment advice or an offer to buy or sell any security.

About Capitala Group: Capitala Group (“Capitala”) is a leading private markets investment firm that has been investing private credit and private equity capital into lower middle-market businesses throughout North America for over twenty-five years. Since our inception in 1998, Capitala has invested and managed over $3.2 billion[1], utilizing our flexible capital mandate to deliver creative financing solutions. We aim to partner with strong management teams to create value and support growth through strategic partnerships, operational expertise, and a shared vision for success.

Capitala's ecosystem includes 98 banks on its platform since inception and benefits from a senior leadership team with a combined 195 years of experience. To date, we have invested in 35 of the 50 states, further demonstrating our broad reach and commitment to supporting businesses nationwide. For more information, visit www.CapitalaGroup.com.

[1] Includes invested capital since inception, callable capital to commingled funds and available credit facilities, and discretionary and non-discretionary managed accounts.