Case Studies

Dividend Recapitalization Case Study

Authentic Italian Restaurant Chain

The Business

The Portfolio Company, headquartered in the Southeast, has multiple company owned hospitality locations located throughout the United States and various franchised locations globally.

The Transaction

The Company was introduced to Main Street by a New York based

intermediary representing the business for a capital raise. With a significant portion of their net worth tied up in the business, the Company’s owners sought a financial partner who could provide both growth capital and liquidity while still allowing management to maintain control and drive continued growth in the business. After evaluating a number of options, the Company selected Main Street as the ideal financial partner.

Main Street’s initial investment, a senior secured term loan

and minority equity investment, provided 100% of the capital needed to facilitate the recapitalization and fund growth initiatives. Main Street’s hands-off approach has allowed the owners to continue to execute their growth strategy knowing they have a financial partner that believes in their vision.

Transaction Summary

Transaction Type

  • Dividend recapitalization
  • Growth capital
  • One-stop financing

Original Investment

  • $48,000,000 (debt and equity)

Investment Structure

  • Senior secured debt
  • Minority equity ownership