Investment Criteria

MVC serves as the lead investor for transactions, as well as a co-investor in companies with other private equity sponsors. We generally invest through preferred and common equity, subordinated debt, term loans, and cash flow loans. The criteria currently being used by MVC in determining whether to make an investment in a prospective portfolio company include, but are not limited to, our analysis of:

•  Businesses with secure market positions and predictable profit margins;
•  The presence or availability of highly qualified management teams;
•  The line of products or services offered and their market potential;
•  The presence of a sustainable competitive advantage;
•  Favorable industry and competitive dynamics; and
•  Stable free cash flow of the business.

Other criteria may include:
•  Underperforming companies relative to their potential due to structural impediments
•  Opportunities to revitalize and redirect a company's resources and strategy

Industries in which we prefer to invest include, but are not limited to:
•  Consumer Products •  Industrial Manufacturing / Services
•  Food / Food Service •  Financial Services
•  Value-added Distribution •  Specialty Chemicals

General Financial Parameters:
•  Revenues of $10 to $200 million
•  EBITDA (earnings before interest, taxes, depreciation & amortization) of $3 to $25 million
•  Investment size ranging from $3 to $25 million

General Transaction Types:
•  Management Buyouts •  Going Private Transactions
•  Private Company Recapitalization •  Operational Turnarounds
•  Control and Non-Control Equity Positions •  Corporate Partnerships
•  Growth / Expansion Capital •  Leveraged Buildup
•  Acquisition Financing



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