Creative Structured Investments in the Lower Middle Market

Acorn Street Capital utilizes Asset-Based Lending (ABL) to provide loans secured by company assets such as inventory, receivables, or other tangible assets. ABL is commonly used in scenarios where companies have substantial asset bases that can be leveraged to support borrowing needs vs. consistent cashflows.

Acorn Street Capital offers loans based on the historical or projected cash flows. Cashflow scenarios are commonly for businesses with recurring revenue streams but perhaps fewer tangible assets to offer as collateral. Acorn has substantial experience investing cashflow turnaround scenarios, seasonal industries, and customer concentration models.

Acorn Street Capital offers special situation capital including complex scenarios such as bridge, acquisitions, complex refinancings, cross-collateralizations, turnarounds, debtor-in-possession financings, or rapid growth opportunities. This strategy involves providing bespoke financing solutions that are tailored to the unique circumstances, often involving high degrees of structuring flexibility to accommodate needs associated with transition.