Frequently Asked Questions
Back to FAQ'sWhat is the capital raising process that a Lexington client goes through?
Lexington undertakes a rigorous, process-oriented approach to targeting institutional funding sources. With respect to private equity funds; by developing an understanding of the investment criteria and existing portfolio of private equity funds, Lexington is effective in targeting institutions that suit the particular characteristics of our client in terms of industry, transaction size, type, funding stage, and other key metrics. Lexington’s process-oriented approach includes:
- Gain understanding of companies growth-expectations and assess your capital needs
- Undertake due diligence to determine the expected level of success
- Assist the client in the preparation of collateral material or a confidential information memorandum, which sets forth the financing opportunity (PPM, Executive Summaries, Power Points, Financial Models, etc.)
- Simultaneously identify and compile a target list of potential financing sources
- Communicate with the targeted funds and present them with the financing opportunity
- Prepare management for presentations and face-to-face meetings
- Guide and Advise the client through the process, and work with the client to:
-Design a capital structure
-Solicit cost-effective terms sheets
-Select compatible financing source(s)
-Negotiate valuation ranges
-Secure capital growth in a timely manner
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Lexington has extensive experience in the capital markets and has developed relationships with private equity firms, mezzanine, senior and subordinated-debt lenders and other institutional financing sources to assist you. We only work with and maintain on-going and close relationships with highly regarded institutional providers of capital and have an extensive, up-to-date nationwide database of lenders and equity investors to draw from.
