OFS Capital Corporation is a business development company specializing in direct and fund investments as well as add-on acquisitions. It provides flexible capital solutions primarily through debt capital and, to a lesser extent, minority equity investments, serving the needs of U.S.-based middle-market companies across a broad array of industries. It does not invest in operational turnarounds or start-up businesses.
For direct investments, OFS Capital specializes in debt and structured equity investments, recapitalizations and refinancing, management and leveraged buyouts, acquisition financings, ownership transition, shareholder liquidity events, growth capital, independent sponsor transactions, ESOPs, and minority investments in lower middle market companies.
The firm invests in the aerospace and defense, business services, consumer products and services, construction & building, durable goods, capital equipment, automotive, food and beverage, healthcare & pharmaceutical, specialty chemicals, transportation cargo and logistics, value-added distribution, franchising, and industrial and niche manufacturing sectors.
OFS Capital invests in companies based in the United States. It seeks to invest between $3 million and $35 million, with revenues between $15 million and $300 million, annual EBITDA between $5 million and $50 million, and enterprise value between $10 million and $500 million. The firm seeks to invest in companies with debt investment values between $5 million and $25 million.
The fund uses senior secured, unitranche loans, first-lien, second lien, subordinated/mezzanine loans, warrants, and preferred equity securities and common equity securities. It prefers to take a minority as well as majority stake in the investments made. Additionally, it co-invests with its partners for additional capital.
