Investing in the “strip” alternative
Linx and its management partners invest in substantially all of the remaining securities below the senior lender. These securities typically include current-pay subordinated debt and equity. By investing in this manner, Linx and its management partners are able to control the balance sheet, distribute capital back to investors throughout the investment period, and avoid third-party subordinated lenders who could potentially add complexity to the relationship and impede surety to close.
Conservative Senior Leverage
We execute these structures starting with a conservative use of senior leverage. While we are often offered substantially more leverage from senior lenders for particular transactions, we sometimes choose not to accept such offers. We believe in protecting our companies and creating value through growth and operational improvement, not purely through financial engineering.
Wealth creation opportunities for management teams
We create true partnerships with entrepreneurial management teams by instituting meaningful equity ownership and incentive plans that align the management teams with the equity investors. We all win together.
We maintain close relationships with senior and mezzanine lenders who value partnerships the same way we do. We have executed transactions with various lending partners, but are always looking for new partners for future investments.