Founded in 2012, NorthCoast provides subordinated debt and non-control equity co-investments to lower middle-market companies throughout the United States. We finance leveraged acquisitions backed by lower middle-market private equity sponsors, management and family driven ownership transitions, add-on acquisitions, recapitalizations and growth initiatives.
Our strategy targets businesses with EBITDA of $2 million and above. We invest in a variety of industries in companies with high-quality management, adequate revenue diversification, stable and growing end-market demand, defensible market positions and sustainable free cash flow.
Our principals have decades of experience working together both at NorthCoast and prior firms. They bring a combined track record of more than 200 mezzanine transactions totaling $900 million of invested capital.
Spell Capital Mezzanine was founded in 2011 when Mark McDonald and Stacy Harmsen partnered with Bill Spell and Spell Capital Partners to raise its first SBIC mezzanine debt fund. $140 million Fund I launched in 2012 and was followed by $265 million Fund II in 2017.
As part of Bill Spell’s succession planning, the partners had the opportunity to spin out of Spell Capital in July 2022 and form NorthCoast Mezzanine in conjunction with raising a $285 million Fund III. NorthCoast will continue to manage Fund I and Fund II. While the brand has changed, the team remains dedicated to being a dependable and value-added mezzanine partner with deep industry knowledge and an efficient investment process.
NorthCoast’s investment professionals have long track records of successfully investing in lower middle market companies across a wide range of economic cycles.
Working directly with NorthCoast’s decision makers ensures open communication and timely feedback, both before a transaction closes and throughout the life of the investment.
Working directly with NorthCoast Mezzanine’s decision makers ensures open communication and timely feedback, both before a transaction closes and throughout the life of the investment.
NorthCoast brings a flexible approach to structuring transactions to best meet the needs of our partners.