AFD IS A GROWTH PARTNER, NOT JUST A LENDER

AFD Capital Management

Unlike traditional lenders who focus solely on loan repayment, AFD Capital Management operates as a strategic growth partner, providing businesses with the capital, financial monitoring & advisory support, and structured equity solutions needed to scale efficiently.

Flexible Growth Capital with Structured Equity Participation

AFD provides mezzanine financing, offering businesses non-dilutive capital with a temporary equity stake rather than permanent ownership transfer.
Borrowers benefit from critical expansion capital while retaining control of their company.
AFD will take a subordinated position to your senior lender.

Access to Senior Loan Financing Without Overleveraging

Many businesses struggle to secure senior loan financing due to insufficient collateral or capital reserves.
AFD’s mezzanine capital bridges this gap, ensuring borrowers can meet senior lender funding conditions without taking on excessive debt.

Structured Exit Strategy Through Equity Buyouts

Unlike private equity firms that retain long-term ownership, AFD’s temporary equity participation model allows borrowers to repurchase AFD’s stake at a pre-set valuation with a premium, providing your business with a clear, defined exit strategy.
This structured approach ensures borrowers regain full ownership once they’ve stabilized their growth phase.

Accelerating Expansion & Acquisitions Without Ownership Dilution

Businesses looking to expand, acquire competitors, or scale operations often face funding challenges that require equity dilution.
AFD’s mezzanine financing structure allows businesses to secure the necessary capital without sacrificing permanent equity, giving your business greater flexibility to execute your growth vision.

How Borrowers Benefit from AFD’s Growth Partnership

Retain Ownership While Scaling

Borrowers secure essential growth capital without giving up long-term control of their business.

Gain Access to Financial Expertise –

AFD’s CFO monitoring & advisory services ensure strong financial oversight, reducing operational risks.

Bridge the Senior Loan Gap

AFD helps businesses qualify for larger financing rounds by providing necessary capital contributions.

Defined Buyout Structure

Borrowers can plan their exit strategy from AFD’s equity stake, ensuring a predictable path to full ownership.

Faster Access to Growth Capital

AFD’s mezzanine structure provides flexible funding options, avoiding lengthy and restrictive loan underwriting processes.

The Buyout Structure: How & When your equity is reacquired.

Your business is expected to grow annually, meaning your company’s valuation increases each year.

After Year 4, you will have the opportunity to repurchase our 5% equity stake at fair market value plus a small premium.
You get growth capital today, and in a few years, you buy back your equity at a predictable, pre-set price structure.
You maintain full ownership while still getting the financing you need.
The key takeaway is: Once a company buys out AFD’s stake, AFD no longer has ownership in that business.

How $500K in Mezzanine Financing Supports Capital Growth

a $500K mezzanine loan can be structured to unlock additional senior financing, enhance liquidity, or support strategic growth. Here’s how:

First SCENARIO: A business wants to acquire another company or expand operations, but the senior lender requires the borrower to invest more capital upfront (10%-20% equity).

The $500K Mezz loan can serve as required equity capital, unlocking $5M+ in senior financing.

This leverages higher growth potential by allowing the company to complete a larger transaction than it could on its own.

Example: A $500K Mezz loan secures a $5M senior loan, enabling a $5.5M expansion project

Second SCENARIO: A high-growth company is scaling operations but wants to avoid giving up ownership through outside equity investors.

AFD’s $500K loan fills the gap instead of issuing equity.

This ensures holders in equity retain control while still funding growth.

Example: A tech firm uses $500K Mezz debt to expand into new markets, increasing valuation without dilution.

Third scenario:A company is acquiring a competitor but lacks enough upfront cash for the purchase.

The $500K Mezz loan funds part of the acquisition price, reducing the buyer’s equity requirement.

Works well in Private Equity-backed roll-ups where firms acquire multiple businesses using leverage.

Example: AFD lends $500K to a healthcare company acquiring a small clinic, bridging the capital needed for the deal.

fourth scenario: A company wants to expand to a new location or purchase equipment but lacks immediate capital.

The $500K loan supports upfront costs for a new facility, additional production capacity, or major equipment purchases.

Example: A manufacturer uses $500K Mezz capital to buy new machinery, boosting production capacity and revenue.

FIFTH SCENARIO: A growing company needs working capital to hire more employees, ramp up marketing, or expand inventory.

The $500K is used for growth initiatives, boosting revenue while the senior lender covers asset-heavy investments.

Example: A retail business uses $500K to open an e-commerce channel, growing revenue without external equity.

AFD IS A GROWTH PARTNER, NOT JUST A LENDER

AFD Capital Management

Flexible Growth Capital with Structured Equity Participation

Access to Senior Loan Financing Without Overleveraging

Structured Exit Strategy Through Equity Buyouts

Accelerating Expansion & Acquisitions Without Ownership Dilution

How Borrowers Benefit from AFD’s Growth Partnership

Retain Ownership While Scaling

Gain Access to Financial Expertise –

Bridge the Senior Loan Gap

Defined Buyout Structure

Faster Access to Growth Capital

How the AFD Equity Stake Works

The Buyout Structure: How & When your equity is reacquired.

How $500K in Mezzanine Financing Supports Capital Growth

We are your “problem-solving company” today and in the future.

AFD IS A GROWTH PARTNER, NOT JUST A LENDER

AFD Capital Management

Flexible Growth Capital with Structured Equity Participation

Access to Senior Loan Financing Without Overleveraging

Structured Exit Strategy Through Equity Buyouts

Accelerating Expansion & Acquisitions Without Ownership Dilution

How Borrowers Benefit from AFD’s Growth Partnership

Retain Ownership While Scaling

Gain Access to Financial Expertise –

Bridge the Senior Loan Gap

Defined Buyout Structure

Faster Access to Growth Capital

How the AFD Equity Stake Works

The Buyout Structure: How & When your equity is reacquired.

How $500K in Mezzanine Financing Supports Capital Growth

We are your “problem-solving company” today and in the future.

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