The Pfingsten Difference

CONSERVATIVE CAPITAL STRUCTURES

To support our operational approach to value creation, our platform company capital structures are designed to provide management with the flexibility to support investments in infrastructure, operational improvements, organic growth, strategic acquisitions and to weather cyclical downturns.

We invest a minimum of 50% equity into the capital structure of each platform company, which allows the management team to focus on building a better business. A conservative capital structure maximizes operating flexibility and allows the company to weather economic volatility and competitive threats.

It also increases our ability to close transactions. Even in volatile credit markets, 50% equity in a company's capital structure gets deals done. We don't employ mezzanine debt, subordinated debt or second lien financing which eliminates intercreditor agreements and simplifies negotiations. We also remove syndication risk by using single lenders or a small group of lenders that we know to finance our platforms. As a result, we have closed over 90% of the Letters of Intent that we have signed in our nearly 20 year history and have never failed to close a transaction due to financing.