M Cap Finance Mittelstandsfonds

About The Fund

M Cap Finance Mittelstandsfonds is an independent management company that operates as an initiator of equity and mezzanine capital funds in Germany. With a focus on mezzanine and equity capital provision, they cater to medium-sized companies in the DACH region (Germany, Austria, and Switzerland), specifically targeting establishments with up to €500 million annual turnover. Founded in 2004 and headquartered in Frankfurt, Germany, the firm has over two decades of experience in fund establishment and capital investment in the Mittelstand, which is the segment of small to medium enterprises that defines the German economy. M Cap Finance strengthens the equity structure of medium-sized companies through profit participation rights (Genussrechtsfinanzierungen) and/or direct equity investments. These financial instruments are designed for various occasions, such as growth, acquisitions, succession and buyout transactions, and recapitalization. For investors, the firm's longstanding expertise as a fund initiator provides a solid foundation for successful returns. M Cap Finance specializes in expansion/growth financing, enabling companies to extend their production capacities, tap into new markets or develop new products, and actively shape growth spurts. Mezzanine capital, which they offer without diluting shareholder control, helps to bridge gaps between equity and debt until growth strategies are successfully implemented. In succession and buyout scenarios, such as management buyouts (MBO) and management buy-ins (MBI), mezzanine capital is utilized to optimize financing structures and enhance stability. When companies plan acquisitions of competitors, mezzanine capital from M Cap Finance offers the necessary, risk-tolerant funds. In recapitalization scenarios, mezzanine capital plays a crucial role in reorganizing and restructuring capital relationships, which often allows shareholders or equity investors to generate liquidity or finance their exits. M Cap Finance ensures a subordinate position in the capital structure, usually with a transaction size up to €15 million and a typical duration of 7 years, providing partial early reimbursement options after 5 years.