Debt advisory

The emergence of alternative lenders, mezzanine and private equity funds in the Baltics, has provided companies with other alternatives to conventional Bank financing and opened the market to a variety of other financing options. Through utilizing our experience and contacts, we can advise on the most optimal funding partner & structure that best suits your strategic goals.

 

We help our clients with:

  • Financial analysis and preparing a deal strategy

  • Creating necessary marketing materials (Financial models, Teaser, information memorandum, Non-disclosure form (NDA)

  • Analyzing capital markets and preparing list with potential financier

  • Contacting the financiers, presenting clients company and negotiating deal terms and structure

  • Arranging and organizing legal work and executing the transaction

Through our network, we help our clients to raise capital through:

Growth equity

Growth equity is a type of equity investment, usually a minority share investment, in fast-growing companies that are looking for capital to expand or restructure operations, enter new markets or finance a significant acquisition meanwhile letting existing owners keeping controlling stake in the business.

Bank financing

Auctus Capital has strong relationships with most of the Banks in Baltics and we can help companies to negotiate better loan terms and more flexible deal structure or introduce the company to a new bank, better-suited to help with specific needs.

Mezzanine debt

Mezzanine debt gets its name because it blurs the lines between what constitutes debt and equity. It is the highest-risk form of debt, and the typical rate is in the range of 10% to 20% per year. Mezzanine debt is suitable for fast-growing companies looking to expand quickly but doesn’t want to give up equity.

P2P platforms

In the past decade has gained popularity and can be a great asset to small businesses and start-ups, that are too small or risky for large institutional lenders, looking for funding to expand, take on new employees, or even cover day-to-day expenses. Corporate P2P lending is more expensive and interest rates start from 15% per year and up.

Unitranche debt

Unitranche lending involves a hybrid loan structure that combines senior debt and subordinated debt into one loan facility at a blended interest rate that falls between the rates of the two traditional types of debt, senior and mezzanine (typically around 7%-10% per year).

Venture capital

Venture capital typically invests in equity. VC investors are looking for startup companies and small businesses that are believed to have long-term growth potential. VC financing is suited for companies that are too small and don't generate cash flows sustainable to cover debt financing. 

Corporate bonds

Bonds are issued by a mature corporation to raise financing for a variety of reasons such as ongoing operations, M&A, or to expand the business. Corporate bonds typically are secured with 1 lien pledge on the borrower’s assets. Interest rates vary based on the company’s risk profile and typically are around 3%-8% per year and compared to Banks offer a more flexible covenant structure and risk profile.

Family Offices

Auctus Capital has a strong network across Baltic's and we can help to open doors and connect your business with non-institutional sponsors that can help with financing needs.