Initiative & Finance

About The Fund

Initiative & Finance is a private equity firm based in Frankfurt am Main, Germany, with a distinctive expertise in various financing forms such as Debt, Equity, and Mezzanine capital. They primarily cater to the Other and FinTech industries, alongside Financial Services. Their investment strategy is quite diverse, covering Expansion, Later Stage, MBO/LBO, Recapitalization, and Restructuring transactions. With assets under management totaling approximately €385 million, Initiative & Finance's financial commitment ranges, setting a minimum investment threshold of €2 million and capping off at €15 million per transaction. They specialize in nurturing mid-market firms through strategic equity strengthening and enabling growth and change via their investment initiatives. M Cap Finance, which operates under Initiative & Finance, serves as an independent management company initiating funds in Germany focused on private equity and mezzanine capital for the past two decades. Their approach benefits established middle-market enterprises by offering equity participations and subordinated capital financing suited for growth, acquisitions, succession, and buyout transactions, as well as recapitalization. For investors, Initiative & Finance's lengthy track record in initiating such funds poses a foundation for successful returns. The firm offers mezzanine capital without equity dilution, serving as a financial bridge during expansion or restructuring phases. This capital enables businesses to maintain control while expanding production capacities, entering new markets, or executing growth strategies. In supporting management buyouts or buy-ins, mezzanine capital can also help optimize transaction structures and provide greater stability. During acquisitions, this flexible capital source acts as a cornerstone for the financing structure, facilitating payments or subsequent integration efforts. Moreover, in recapitalizations, mezzanine capital is instrumental in reorganizing equity relationships and fostering liquidity for shareholder exits or new leveraging of investments. Initiative & Finance targets medium-sized German-speaking companies with up to €500 million in annual revenue, offering tailored financing solutions and direct equity investments.