PRIVATE EQUITY APPROACH TO DEBT INVESTING
Freedom 3’s approach creates an investment with attractive current yield and downside principal protection. We help companies and their stakeholders navigate through inflection points in their business.
QUALITY OF ASSET
We consider the merits of the industry, company and management team before developing a view of credit.
DOWNSIDE PROTECTION
Structure designed to protect principal, while allowing for upside with a strong focus on cash flow characteristics.
SELECTIVITY
Our selective investment review process seeks out the best partnership for our investors.
The formula behind Freedom 3’s private credit solutions
Note: Past performance is not indicative of future results. This does not constitute an offering or a solicitation.
We look beyond spreadsheets.
We focus on creating a partnership to enhance growth and value creation.
how we do it
- We look at the Industry. What business is the company in? First impressions can be deceiving… understanding industry dynamics is critical.
- We look at the company within that sector. What is its market share? How is its competitive position? Where is the opportunity for growth?
- We look at the management team and owners. Are they flexible, smart, nimble, disciplined? Do they have the capabilities and incentives to succeed? Do they have a strong culture to promote success?
- We look at the numbers. We examine all the angles. What are the spreadsheets really telling us? Little details can make a big difference.
structure of investments
F3C’s junior capital partnership approach to investing combines credit downside protection along with equity upside.
freedom 3 private debt investing advantages
LOW VOLATILITY
- Unique private equity style to credit investing
PRINCIPAL PRESERVATION
- Creditor protection in the form of senior secured notes, subordinated notes or preferred stock
- Active portfolio management and board observation rights
HIGH CURRENT INCOME
- Investments are generally structured with 9% to 13% cash coupons, upfront fees and call protection; occasionally augmented with PIK interest
EQUITY UPSIDE
- Usually participate in the equity upside via warrants, options and/or equity co-investment
We seek to invest in strong businesses that value our partnership approach to providing debt capital.
freedom 3 STRATEGY
We focus on investing in middle market companies and on providing a combination of junior capital securities to generate current income and capital appreciation.
