INVESTMENT STRATEGY

 

We believe that current market conditions are extremely attractive for investors in mezzanine. Following the recent financial crisis, competition from banks, hedge funds and managers of collateralised debt obligations, has significantly reduced as investors have exited the market. Demand for mezzanine, however, remains strong as private equity firms have significant funds for investment and there are high levels of existing leveraged debt which will needs to be refinanced over the next few years. As a result of these factors, deal structures have become more conservative and risk adjusted returns have increased.

Carta Capital invests in high quality mezzanine investments and junior capital throughout Europe with a principal focus on the UK. The aim is to achieve an attractive total return on invested capital through a combination of a high contractual yield and equity upside. Carta Capital targets the attractive mid market sector investing in companies with an enterprise value of up to £100m with individual investments of between £3m to £7 million. The Partners have invested through numerous investment, macro-economic and political cycles and utilise their highly developed origination and credit skills to develop diversified and defensive portfolios of high quality mezzanine assets.

Carta Capital focuses on investments in Companies which have established operations with a good track record, strong and stable cash flow, an experienced management team, clear business strategy, a strong competitive position, and a robust financial structure with appropriate leverage and equity provided by an experienced private equity sponsor.