Local investors look to fill bank credit gap with $100M fund

By Geert De Lombaerde Posted on October 13, 2009 at 3:14 pm

Nashville-based Claritas Capital has begun raising up to $100 million for a mezzanine fund that would commit between $3 million and $15 million to health care and business services companies left without capital-raising options. A team led by Morgan Keegan alum Bruton Harvey will lend based on enterprise value and charge double-digit interest rates.

Claritas is aiming at health care-services and business-services companies with $2 million to $10 million in earnings before interest, taxes, depreciation and amortization. Banks have fled that market since the meltdown, and Claritas is betting they won’t return for two to three years.

SEE ALSO: Banks are hurting small biz’s growth potential

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Tags: banking, Claritas Capital, debt, mezzanine capital, small business, venture capital  

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